þ
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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o
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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Bermuda
(State or Other Jurisdiction of Incorporation or Organization)
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98-0557567
(I.R.S. Employer Identification No.)
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1555 Peachtree Street, N.E., Suite 1800, Atlanta, GA
(Address of Principal Executive Offices)
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30309
(Zip Code)
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Large accelerated filer
þ
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Accelerated filer
o
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Non-accelerated filer
o
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Smaller reporting company
o
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Emerging growth company
o
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Page
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TABLE OF CONTENTS
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As of
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$ in millions, except per share data
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September 30, 2018
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December 31, 2017
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ASSETS
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Cash and cash equivalents
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1,631.5
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2,006.4
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Unsettled fund receivables
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851.6
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793.8
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Accounts receivable
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557.5
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622.5
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Investments
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643.8
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674.6
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Assets of consolidated investment products (CIP):
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Cash and cash equivalents of CIP
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282.8
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511.3
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Accounts receivable and other assets of CIP
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56.7
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131.5
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Investments of CIP
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6,074.6
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5,658.0
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Assets held for policyholders
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12,268.2
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12,444.5
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Prepaid assets
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130.9
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124.4
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Other assets
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69.0
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61.7
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Property, equipment and software, net
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469.2
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490.7
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Intangible assets, net
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2,156.5
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1,558.7
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Goodwill
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7,311.5
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6,590.7
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Total assets
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32,503.8
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31,668.8
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LIABILITIES
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Accrued compensation and benefits
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552.7
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696.1
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Accounts payable and accrued expenses
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864.2
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895.7
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Liabilities of CIP:
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Debt of CIP
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4,820.5
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4,799.8
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Other liabilities of CIP
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315.8
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498.8
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Policyholder payables
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12,268.2
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12,444.5
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Unsettled fund payables
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821.5
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783.8
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Long-term debt
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2,814.6
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2,075.8
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Deferred tax liabilities, net
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304.3
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275.5
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Total liabilities
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22,761.8
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22,470.0
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Commitments and contingencies (See Note 11)
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TEMPORARY EQUITY
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Redeemable noncontrolling interests in consolidated entities
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423.2
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243.2
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PERMANENT EQUITY
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Equity attributable to Invesco Ltd.:
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Common shares ($0.20 par value; 1,050.0 million authorized; 490.4 million shares issued as of September 30, 2018 and December 31, 2017)
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98.1
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98.1
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Additional paid-in-capital
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6,293.0
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6,282.0
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Treasury shares
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(2,710.8
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)
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(2,781.9
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)
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Retained earnings
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5,892.6
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5,489.1
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Accumulated other comprehensive income/(loss), net of tax
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(585.8
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)
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(391.2
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)
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Total equity attributable to Invesco Ltd.
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8,987.1
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8,696.1
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Equity attributable to nonredeemable noncontrolling interests in consolidated entities
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331.7
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259.5
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Total permanent equity
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9,318.8
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8,955.6
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Total liabilities, temporary and permanent equity
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32,503.8
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31,668.8
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Three months ended September 30,
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Nine months ended September 30,
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$ in millions, except per share data
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2018
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2017
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2018
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2017
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||||||||
Operating revenues:
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Investment management fees
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1,038.9
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1,062.3
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3,133.1
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3,027.9
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Service and distribution fees
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248.0
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217.6
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737.0
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635.3
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Performance fees
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7.9
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42.3
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28.6
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70.3
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Other
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47.0
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15.5
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159.5
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51.2
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Total operating revenues
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1,341.8
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1,337.7
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4,058.2
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3,784.7
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Operating expenses:
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Third-party distribution, service and advisory
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408.0
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380.4
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1,236.0
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1,095.6
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Employee compensation
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385.5
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388.1
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1,157.0
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1,151.8
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Marketing
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34.0
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29.5
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94.9
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83.0
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Property, office and technology
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104.8
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92.8
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308.7
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267.3
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General and administrative
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87.4
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86.6
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287.1
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250.5
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Total operating expenses
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1,019.7
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977.4
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3,083.7
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2,848.2
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Operating income
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322.1
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360.3
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974.5
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936.5
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Other income/(expense):
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Equity in earnings of unconsolidated affiliates
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11.8
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12.9
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28.8
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41.1
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Interest and dividend income
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4.0
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2.5
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11.0
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7.0
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Interest expense
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(29.6
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)
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(23.6
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)
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(82.3
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)
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(71.2
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)
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Other gains and losses, net
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5.9
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13.9
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1.9
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23.9
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Other income/(expense) of CIP, net
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28.1
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31.7
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56.2
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92.5
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Income before income taxes
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342.3
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397.7
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990.1
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1,029.8
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Income tax provision
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(61.1
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)
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(123.1
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)
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(201.8
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)
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(291.4
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)
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Net income
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281.2
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274.6
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788.3
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738.4
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Net (income)/loss attributable to noncontrolling interests in consolidated entities
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(11.6
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)
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(7.1
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)
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(19.7
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)
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(19.3
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)
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Net income attributable to Invesco Ltd.
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269.6
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267.5
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768.6
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719.1
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Earnings per share:
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-basic
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$0.65
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$0.65
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$1.86
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$1.76
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-diluted
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$0.65
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$0.65
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$1.86
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$1.76
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Dividends declared per share
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$0.30
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$0.29
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$0.89
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$0.86
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Three months ended September 30,
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Nine months ended September 30,
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$ in millions
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2018
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2017
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2018
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2017
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Net income
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281.2
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274.6
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788.3
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738.4
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Other comprehensive income/(loss), net of tax:
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Currency translation differences on investments in foreign subsidiaries
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(23.6
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)
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142.4
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(192.6
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)
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352.4
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Other comprehensive income/(loss), net of tax
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1.5
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3.3
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1.2
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8.4
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Other comprehensive income/(loss)
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(22.1
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)
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|
145.7
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(191.4
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)
|
|
360.8
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|
Total comprehensive income/(loss)
|
259.1
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|
420.3
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|
596.9
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1,099.2
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Comprehensive loss/(income) attributable to noncontrolling interests in consolidated entities
|
(11.6
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)
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(7.1
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)
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(19.7
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)
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(19.3
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)
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Comprehensive income/(loss) attributable to Invesco Ltd.
|
247.5
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|
|
413.2
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|
|
577.2
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|
1,079.9
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|
Nine months ended September 30,
|
||||
$ in millions
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2018
|
|
2017
|
||
Operating activities:
|
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Net income
|
788.3
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|
738.4
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|
Adjustments to reconcile net income to net cash provided by/(used in) operating activities:
|
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Amortization and depreciation
|
105.6
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|
82.2
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Share-based compensation expense
|
124.5
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|
134.9
|
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Other (gains)/losses, net
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(1.9
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)
|
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(27.6
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)
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Other (gains)/losses of CIP, net
|
2.3
|
|
|
(53.4
|
)
|
Equity in earnings of unconsolidated affiliates
|
(28.8
|
)
|
|
(41.1
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)
|
Distributions from equity method investees
|
9.9
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|
|
14.9
|
|
Changes in operating assets and liabilities:
|
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(Purchase)/sale of investments by CIP, net
|
(228.3
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)
|
|
(277.7
|
)
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(Purchase)/sale of investments, net
|
(36.4
|
)
|
|
146.8
|
|
(Increase)/decrease in receivables
|
(280.7
|
)
|
|
(3,134.3
|
)
|
Increase/(decrease) in payables
|
207.6
|
|
|
3,189.9
|
|
Net cash provided by/(used in) operating activities
|
662.1
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|
|
773.0
|
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Investing activities:
|
|
|
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Purchase of property, equipment and software
|
(68.3
|
)
|
|
(82.7
|
)
|
Purchase of investments by CIP
|
(3,780.1
|
)
|
|
(4,432.4
|
)
|
Sale of investments by CIP
|
2,633.5
|
|
|
4,219.6
|
|
Purchase of investments
|
(114.9
|
)
|
|
(123.5
|
)
|
Sale of investments
|
101.2
|
|
|
154.2
|
|
Capital distributions from equity method investees
|
15.0
|
|
|
61.3
|
|
Purchase of business
|
(1,469.3
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)
|
|
(299.2
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)
|
Net cash provided by/(used in) investing activities
|
(2,682.9
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)
|
|
(502.7
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)
|
Financing activities:
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Purchases of treasury shares
|
(49.7
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)
|
|
(58.6
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)
|
Dividends paid
|
(368.3
|
)
|
|
(352.7
|
)
|
Third-party capital invested into CIP
|
421.1
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|
|
397.7
|
|
Third-party capital distributed by CIP
|
(89.4
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)
|
|
(93.2
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)
|
Borrowings of debt by CIP
|
1,975.4
|
|
|
1,887.4
|
|
Repayments of debt by CIP
|
(1,030.8
|
)
|
|
(1,962.4
|
)
|
Net borrowings/(repayments) under credit facility
|
737.2
|
|
|
(28.7
|
)
|
Payment of contingent consideration
|
(11.4
|
)
|
|
(10.3
|
)
|
Net cash provided by/(used in) financing activities
|
1,584.1
|
|
|
(220.8
|
)
|
Increase/(decrease) in cash and cash equivalents
|
(436.7
|
)
|
|
49.5
|
|
Foreign exchange movement on cash and cash equivalents
|
(27.3
|
)
|
|
87.1
|
|
Foreign exchange movement on cash and cash equivalents of CIP
|
(1.7
|
)
|
|
4.4
|
|
Net cash inflows (outflows) upon consolidation/deconsolidation of CIP
|
(137.7
|
)
|
|
(9.0
|
)
|
Cash and cash equivalents, beginning of period
|
2,517.7
|
|
|
2,070.2
|
|
Cash and cash equivalents, end of period
|
1,914.3
|
|
|
2,202.2
|
|
|
|
|
|
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Cash and cash equivalents
|
1,631.5
|
|
|
1,716.3
|
|
Cash and cash equivalents of CIP
|
282.8
|
|
|
485.9
|
|
Total cash and cash equivalents per consolidated statement of cash flows
|
1,914.3
|
|
|
2,202.2
|
|
|
Equity Attributable to Invesco Ltd.
|
|
|
|
|
|
|
|||||||||||||||||||
$ in millions
|
Co
mmon
Shares
|
|
Additional Paid-in-Capital
|
|
Treasury Shares
|
|
Retained Earnings
|
|
Accumulated Other Comprehensive Income/(Loss)
|
|
Total Equity Attributable to Invesco Ltd.
|
|
Nonredeemable Noncontrolling Interests in Consolidated Entities
|
|
Total Permanent Equity
|
|
Redeemable Noncontrolling Interests in Consolidated Entities Temporary Equity
|
|||||||||
January 1, 2018
|
98.1
|
|
|
6,282.0
|
|
|
(2,781.9
|
)
|
|
5,489.1
|
|
|
(391.2
|
)
|
|
8,696.1
|
|
|
259.5
|
|
|
8,955.6
|
|
|
243.2
|
|
Adjustment for adoption of ASU 2016-01
|
—
|
|
|
—
|
|
|
—
|
|
|
3.2
|
|
|
(3.2
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
January 1, 2018, as adjusted
|
98.1
|
|
|
6,282.0
|
|
|
(2,781.9
|
)
|
|
5,492.3
|
|
|
(394.4
|
)
|
|
8,696.1
|
|
|
259.5
|
|
|
8,955.6
|
|
|
243.2
|
|
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
768.6
|
|
|
—
|
|
|
768.6
|
|
|
29.7
|
|
|
798.3
|
|
|
(10.0
|
)
|
Other comprehensive income/(loss)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(191.4
|
)
|
|
(191.4
|
)
|
|
—
|
|
|
(191.4
|
)
|
|
—
|
|
Change in noncontrolling interests in consolidated entities, net
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
42.5
|
|
|
42.5
|
|
|
190.0
|
|
Dividends
|
—
|
|
|
—
|
|
|
—
|
|
|
(368.3
|
)
|
|
—
|
|
|
(368.3
|
)
|
|
—
|
|
|
(368.3
|
)
|
|
—
|
|
Employee share plans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Share-based compensation
|
—
|
|
|
124.5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
124.5
|
|
|
—
|
|
|
124.5
|
|
|
—
|
|
Vested shares
|
—
|
|
|
(114.6
|
)
|
|
114.6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Other share awards
|
—
|
|
|
1.1
|
|
|
6.2
|
|
|
—
|
|
|
—
|
|
|
7.3
|
|
|
—
|
|
|
7.3
|
|
|
—
|
|
Purchase of shares
|
—
|
|
|
—
|
|
|
(49.7
|
)
|
|
—
|
|
|
—
|
|
|
(49.7
|
)
|
|
—
|
|
|
(49.7
|
)
|
|
—
|
|
September 30, 2018
|
98.1
|
|
|
6,293.0
|
|
|
(2,710.8
|
)
|
|
5,892.6
|
|
|
(585.8
|
)
|
|
8,987.1
|
|
|
331.7
|
|
|
9,318.8
|
|
|
423.2
|
|
|
Equity Attributable to Invesco Ltd.
|
|
|
|
|
|
|
|||||||||||||||||||
$ in millions
|
Co
mmon
Shares
|
|
Additional Paid-in-Capital
|
|
Treasury Shares
|
|
Retained Earnings
|
|
Accumulated Other Comprehensive Income
|
|
Total Equity Attributable to Invesco Ltd.
|
|
Nonredeemable Noncontrolling Interests in Consolidated Entities
|
|
Total Permanent Equity
|
|
Redeemable Noncontrolling Interests in Consolidated Entities Temporary Equity
|
|||||||||
January 1, 2017
|
98.1
|
|
|
6,227.4
|
|
|
(2,845.8
|
)
|
|
4,833.4
|
|
|
(809.3
|
)
|
|
7,503.8
|
|
|
108.0
|
|
|
7,611.8
|
|
|
283.7
|
|
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
719.1
|
|
|
—
|
|
|
719.1
|
|
|
(6.3
|
)
|
|
712.8
|
|
|
25.6
|
|
Other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
360.8
|
|
|
360.8
|
|
|
—
|
|
|
360.8
|
|
|
—
|
|
Change in noncontrolling interests in consolidated entities, net
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
133.1
|
|
|
133.1
|
|
|
0.3
|
|
Dividends
|
—
|
|
|
—
|
|
|
—
|
|
|
(352.7
|
)
|
|
—
|
|
|
(352.7
|
)
|
|
—
|
|
|
(352.7
|
)
|
|
—
|
|
Employee share plans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Share-based compensation
|
—
|
|
|
134.9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
134.9
|
|
|
—
|
|
|
134.9
|
|
|
—
|
|
Vested shares
|
—
|
|
|
(116.4
|
)
|
|
116.4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Other share awards
|
—
|
|
|
2.2
|
|
|
4.5
|
|
|
—
|
|
|
—
|
|
|
6.7
|
|
|
—
|
|
|
6.7
|
|
|
—
|
|
Purchase of shares
|
—
|
|
|
—
|
|
|
(58.6
|
)
|
|
—
|
|
|
—
|
|
|
(58.6
|
)
|
|
—
|
|
|
(58.6
|
)
|
|
—
|
|
September 30, 2017
|
98.1
|
|
|
6,248.1
|
|
|
(2,783.5
|
)
|
|
5,199.8
|
|
|
(448.5
|
)
|
|
8,314.0
|
|
|
234.8
|
|
|
8,548.8
|
|
|
309.6
|
|
$ in millions
|
Three months ended September 30, 2018
|
|
Nine months ended September 30, 2018
|
||||||||||||||
Condensed Consolidated Statements of Income
|
As Reported
|
|
Adjustments Related to Adoption of
ASC 606 |
|
Balances Without Adoption of
ASC 606 |
|
As Reported
|
|
Adjustments Related to Adoption of
ASC 606 |
|
Balances Without Adoption of
ASC 606 |
||||||
Operating revenues:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Investment management fees
|
1,038.9
|
|
|
50.3
|
|
|
1,089.2
|
|
|
3,133.1
|
|
|
157.9
|
|
|
3,291.0
|
|
Service and distribution fees
|
248.0
|
|
|
(32.4
|
)
|
|
215.6
|
|
|
737.0
|
|
|
(95.9
|
)
|
|
641.1
|
|
Performance fees
|
7.9
|
|
|
—
|
|
|
7.9
|
|
|
28.6
|
|
|
—
|
|
|
28.6
|
|
Other
|
47.0
|
|
|
(34.5
|
)
|
|
12.5
|
|
|
159.5
|
|
|
(110.0
|
)
|
|
49.5
|
|
Total operating revenues
|
1,341.8
|
|
|
(16.6
|
)
|
|
1,325.2
|
|
|
4,058.2
|
|
|
(48.0
|
)
|
|
4,010.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Third-party distribution, service and advisory
|
408.0
|
|
|
(21.1
|
)
|
|
386.9
|
|
|
1,236.0
|
|
|
(61.6
|
)
|
|
1,174.4
|
|
Employee compensation
|
385.5
|
|
|
—
|
|
|
385.5
|
|
|
1,157.0
|
|
|
—
|
|
|
1,157.0
|
|
Marketing
|
34.0
|
|
|
—
|
|
|
34.0
|
|
|
94.9
|
|
|
—
|
|
|
94.9
|
|
Property, office and technology
|
104.8
|
|
|
—
|
|
|
104.8
|
|
|
308.7
|
|
|
—
|
|
|
308.7
|
|
General and administrative
|
87.4
|
|
|
4.5
|
|
|
91.9
|
|
|
287.1
|
|
|
13.6
|
|
|
300.7
|
|
Total operating expenses
|
1,019.7
|
|
|
(16.6
|
)
|
|
1,003.1
|
|
|
3,083.7
|
|
|
(48.0
|
)
|
|
3,035.7
|
|
Operating income
|
322.1
|
|
|
—
|
|
|
322.1
|
|
|
974.5
|
|
|
—
|
|
|
974.5
|
|
|
|
September 30, 2018
|
|
December 31, 2017
|
||||||||
$ in millions
|
|
Carrying Value
|
|
Fair Value
|
|
Carrying Value
|
|
Fair Value
|
||||
Cash and cash equivalents
|
|
1,631.5
|
|
|
1,631.5
|
|
|
2,006.4
|
|
|
2,006.4
|
|
Equity investments
|
|
309.2
|
|
|
309.2
|
|
|
346.6
|
|
|
346.6
|
|
Available-for-sale debt investments
|
|
—
|
|
|
—
|
|
|
15.9
|
|
|
15.9
|
|
Foreign time deposits
*
|
|
20.1
|
|
|
20.1
|
|
|
28.6
|
|
|
28.6
|
|
Assets held for policyholders
|
|
12,268.2
|
|
|
12,268.2
|
|
|
12,444.5
|
|
|
12,444.5
|
|
Policyholder payables *
|
|
(12,268.2
|
)
|
|
(12,268.2
|
)
|
|
(12,444.5
|
)
|
|
(12,444.5
|
)
|
Contingent consideration liability
|
|
(45.4
|
)
|
|
(45.4
|
)
|
|
(57.4
|
)
|
|
(57.4
|
)
|
Long-term debt
*
|
|
(2,814.6
|
)
|
|
(2,883.3
|
)
|
|
(2,075.8
|
)
|
|
(2,258.1
|
)
|
*
|
These financial instruments are not measured at fair value on a recurring basis. See the most recently filed Form 10-K for additional information about the carrying and fair values of these financial instruments. Foreign time deposits are measured at cost plus accrued interest, which approximates fair value, and are accordingly classified as Level 2 securities.
|
|
As of September 30, 2018
|
||||||||||
$ in millions
|
Fair Value Measurements
|
|
Quoted Prices in Active Markets for Identical Assets
(Level 1)
|
|
Significant Other Observable Inputs
(Level 2) |
|
Significant Unobservable Inputs
(Level 3) |
||||
Assets:
|
|
|
|
|
|
|
|
||||
Cash equivalents:
|
|
|
|
|
|
|
|
||||
Money market funds
|
404.2
|
|
|
404.2
|
|
|
—
|
|
|
—
|
|
Investments:*
|
|
|
|
|
|
|
|
||||
Equity investments:
|
|
|
|
|
|
|
|
||||
Seed money
|
202.3
|
|
|
202.3
|
|
|
—
|
|
|
—
|
|
Investments related to deferred compensation plans
|
90.4
|
|
|
90.4
|
|
|
—
|
|
|
—
|
|
Other equity securities
|
16.5
|
|
|
16.5
|
|
|
—
|
|
|
—
|
|
Assets held for policyholders
|
12,268.2
|
|
|
12,268.2
|
|
|
—
|
|
|
—
|
|
Total
|
12,981.6
|
|
|
12,981.6
|
|
|
—
|
|
|
—
|
|
Liabilities:
|
|
|
|
|
|
|
|
||||
Contingent consideration liability
|
(45.4
|
)
|
|
—
|
|
|
—
|
|
|
(45.4
|
)
|
Total
|
(45.4
|
)
|
|
—
|
|
|
—
|
|
|
(45.4
|
)
|
|
As of December 31, 2017
|
||||||||||
$ in millions
|
Fair Value Measurements
|
|
Quoted Prices in Active Markets for Identical Assets
(Level 1)
|
|
Significant Other Observable Inputs
(Level 2) |
|
Significant Unobservable Inputs
(Level 3) |
||||
Assets:
|
|
|
|
|
|
|
|
||||
Cash equivalents:
|
|
|
|
|
|
|
|
||||
Money market funds
|
875.5
|
|
|
875.5
|
|
|
—
|
|
|
—
|
|
Investments:*
|
|
|
|
|
|
|
|
||||
Equity investments:
|
|
|
|
|
|
|
|
||||
Seed money
|
243.0
|
|
|
243.0
|
|
|
—
|
|
|
—
|
|
Investments related to deferred compensation plans
|
92.3
|
|
|
92.3
|
|
|
—
|
|
|
—
|
|
Other equity securities
|
11.3
|
|
|
11.3
|
|
|
—
|
|
|
—
|
|
Available-for-sale debt investments:
|
|
|
|
|
|
|
|
||||
CLOs
|
6.0
|
|
|
—
|
|
|
6.0
|
|
|
—
|
|
Other debt securities
|
9.9
|
|
|
—
|
|
|
—
|
|
|
9.9
|
|
Assets held for policyholders
|
12,444.5
|
|
|
12,444.5
|
|
|
—
|
|
|
—
|
|
Total
|
13,682.5
|
|
|
13,666.6
|
|
|
6.0
|
|
|
9.9
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
Contingent consideration liability
|
(57.4
|
)
|
|
—
|
|
|
—
|
|
|
(57.4
|
)
|
Total
|
(57.4
|
)
|
|
—
|
|
|
—
|
|
|
(57.4
|
)
|
*
|
Foreign time deposits of
$20.1 million
(
December 31, 2017
:
28.6 million
) are excluded from this table. Equity method and other investments of
$308.7 million
and
$5.8 million
, respectively, (
December 31, 2017
:
$277.3 million
and
$6.2 million
,
respectively)
are also excluded from this table. These investments are not measured at fair value, in accordance with applicable accounting standards.
|
|
Three months ended September 30, 2018
|
|
Nine months ended September 30, 2018
|
|||||
$ in millions
|
Contingent Consideration Liability
|
|
Contingent Consideration Liability
|
|
Other Debt Securities
|
|||
Beginning balance
|
(50.1
|
)
|
|
(57.4
|
)
|
|
9.9
|
|
Net unrealized gains and losses included in other gains and losses, net*
|
0.4
|
|
|
0.6
|
|
|
—
|
|
Disposition/settlements
|
4.3
|
|
|
11.4
|
|
|
(9.9
|
)
|
Ending balance
|
(45.4
|
)
|
|
(45.4
|
)
|
|
—
|
|
|
Three months ended September 30, 2017
|
|
Nine months ended September 30, 2017
|
|||||||||||
$ in millions
|
Contingent Consideration Liability
|
|
Other Debt Securities
|
|
Contingent Consideration Liability
|
|
CLOs
|
|
Other Debt Securities
|
|||||
Beginning balance
|
(69.2
|
)
|
|
9.8
|
|
|
(78.2
|
)
|
|
12.9
|
|
|
13.2
|
|
Purchases/acquisitions
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7.3
|
|
Net unrealized gains and losses included in other gains and losses, net*
|
(1.6
|
)
|
|
—
|
|
|
0.2
|
|
|
—
|
|
|
(2.2
|
)
|
Disposition/settlements
|
3.1
|
|
|
(0.1
|
)
|
|
10.3
|
|
|
—
|
|
|
(8.6
|
)
|
Transfer from level 3 to level 2
|
—
|
|
|
—
|
|
|
—
|
|
|
(12.9
|
)
|
|
—
|
|
Ending balance
|
(67.7
|
)
|
|
9.7
|
|
|
(67.7
|
)
|
|
—
|
|
|
9.7
|
|
*
|
These unrealized gains and losses are attributable to balances still held at the respective period ends.
|
|
For the three months ended September 30, 2018
|
|
For the nine months ended September 30, 2018
|
||||||||||||||
$ in millions
|
Proceeds from Sales
|
|
Gross Realized Gains
|
|
Gross Realized Losses
|
|
Proceeds from Sales
|
|
Gross Realized Gains
|
|
Gross Realized Losses
|
||||||
CLOs
|
4.2
|
|
|
1.5
|
|
|
—
|
|
|
16.5
|
|
|
2.3
|
|
|
—
|
|
Other debt securities
|
—
|
|
|
—
|
|
|
—
|
|
|
6.3
|
|
|
—
|
|
|
(3.6
|
)
|
|
4.2
|
|
|
1.5
|
|
|
—
|
|
|
22.8
|
|
|
2.3
|
|
|
(3.6
|
)
|
|
For the three months ended September 30, 2017
|
|
For the nine months ended September 30, 2017
|
||||||||||||||
$ in millions
|
Proceeds from Sales
|
|
Gross Realized Gains
|
|
Gross Realized Losses
|
|
Proceeds from Sales
|
|
Gross Realized Gains
|
|
Gross Realized Losses
|
||||||
Seed money
|
15.2
|
|
|
1.6
|
|
|
—
|
|
|
61.7
|
|
|
2.7
|
|
|
(1.5
|
)
|
CLOs
|
3.5
|
|
|
0.8
|
|
|
—
|
|
|
6.1
|
|
|
1.2
|
|
|
—
|
|
Other debt securities
|
0.1
|
|
|
0.2
|
|
|
—
|
|
|
8.6
|
|
|
1.0
|
|
|
—
|
|
|
18.8
|
|
|
2.6
|
|
|
—
|
|
|
76.4
|
|
|
4.9
|
|
|
(1.5
|
)
|
|
December 31, 2017
|
||||||||||
$ in millions
|
Cost
|
|
Gross Unrealized Holding Gains
|
|
Gross Unrealized Holding Losses
|
|
Fair Value
|
||||
Seed money
|
65.1
|
|
|
5.5
|
|
|
(1.3
|
)
|
|
69.3
|
|
CLOs
|
4.9
|
|
|
1.1
|
|
|
—
|
|
|
6.0
|
|
Other debt securities
|
9.9
|
|
|
—
|
|
|
—
|
|
|
9.9
|
|
|
79.9
|
|
|
6.6
|
|
|
(1.3
|
)
|
|
85.2
|
|
|
December 31, 2017
|
||||
$ in millions
|
Fair Value
|
|
Gross Unrealized Losses
|
||
Less than 12 months
|
9.4
|
|
|
(0.8
|
)
|
12 months or greater
|
15.0
|
|
|
(0.5
|
)
|
Total
|
24.4
|
|
|
(1.3
|
)
|
|
September 30, 2018
|
|
December 31, 2017
|
||||||||
$ in millions
|
Carrying Value**
|
|
Fair Value
|
|
Carrying Value**
|
|
Fair Value
|
||||
Floating rate credit facility expiring August 11, 2022
|
737.2
|
|
|
737.2
|
|
|
—
|
|
|
—
|
|
Unsecured Senior Notes*:
|
|
|
|
|
|
|
|
||||
$600 million 3.125% - due November 30, 2022
|
597.4
|
|
|
589.8
|
|
|
596.9
|
|
|
608.8
|
|
$600 million 4.000% - due January 30, 2024
|
594.6
|
|
|
607.2
|
|
|
594.0
|
|
|
634.7
|
|
$500 million 3.750% - due January 15, 2026
|
495.4
|
|
|
494.4
|
|
|
495.1
|
|
|
515.0
|
|
$400 million 5.375% - due November 30, 2043
|
390.0
|
|
|
454.8
|
|
|
389.8
|
|
|
499.6
|
|
Long-term debt
|
2,814.6
|
|
|
2,883.3
|
|
|
2,075.8
|
|
|
2,258.1
|
|
*
|
The company's senior note indentures contain certain restrictions on mergers or consolidations. Beyond these items, there are no other restrictive covenants in the indentures.
|
**
|
The difference between the principal amounts and the carrying values of the senior notes in the table above reflect the unamortized debt issuance costs and discounts.
|
|
As of
|
||||
In millions
|
September 30, 2018
|
|
December 31, 2017
|
|
|
Common shares issued
|
490.4
|
|
|
490.4
|
|
Less: Treasury shares for which dividend and voting rights do not apply
|
(79.1
|
)
|
|
(83.3
|
)
|
Common shares outstanding
|
411.3
|
|
|
407.1
|
|
|
For the three months ended September 30, 2018
|
|||||||||||||
$ in millions
|
Foreign currency translation
|
|
Employee benefit plans
|
|
Equity method investments
|
|
Available-for-sale investments
|
|
Total
|
|||||
Other comprehensive income/(loss) net of tax:
|
|
|
|
|
|
|
|
|
|
|||||
Currency translation differences on investments in foreign subsidiaries
|
(23.6
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(23.6
|
)
|
Other comprehensive income, net
|
—
|
|
|
1.4
|
|
|
0.9
|
|
|
(0.8
|
)
|
|
1.5
|
|
Other comprehensive income/(loss), net of tax
|
(23.6
|
)
|
|
1.4
|
|
|
0.9
|
|
|
(0.8
|
)
|
|
(22.1
|
)
|
|
|
|
|
|
|
|
|
|
|
|||||
Beginning balance
|
(459.5
|
)
|
|
(107.4
|
)
|
|
2.0
|
|
|
1.2
|
|
|
(563.7
|
)
|
Other comprehensive income/(loss), net of tax
|
(23.6
|
)
|
|
1.4
|
|
|
0.9
|
|
|
(0.8
|
)
|
|
(22.1
|
)
|
Ending balance
|
(483.1
|
)
|
|
(106.0
|
)
|
|
2.9
|
|
|
0.4
|
|
|
(585.8
|
)
|
|
For the nine months ended September 30, 2018
|
|||||||||||||
$ in millions
|
Foreign currency translation
|
|
Employee benefit plans
|
|
Equity method investments
|
|
Available-for-sale investments
|
|
Total
|
|||||
Other comprehensive income/(loss) net of tax:
|
|
|
|
|
|
|
|
|
|
|||||
Currency translation differences on investments in foreign subsidiaries
|
(192.6
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(192.6
|
)
|
Other comprehensive income, net
|
—
|
|
|
3.7
|
|
|
(1.4
|
)
|
|
(1.1
|
)
|
|
1.2
|
|
Other comprehensive income/(loss), net of tax
|
(192.6
|
)
|
|
3.7
|
|
|
(1.4
|
)
|
|
(1.1
|
)
|
|
(191.4
|
)
|
|
|
|
|
|
|
|
|
|
|
|||||
Beginning balance
|
(290.5
|
)
|
|
(109.7
|
)
|
|
4.3
|
|
|
4.7
|
|
|
(391.2
|
)
|
Adjustment for adoption of ASU 2016-01
|
—
|
|
|
—
|
|
|
—
|
|
|
(3.2
|
)
|
|
(3.2
|
)
|
January 1, 2018, as adjusted
|
(290.5
|
)
|
|
(109.7
|
)
|
|
4.3
|
|
|
1.5
|
|
|
(394.4
|
)
|
Other comprehensive income/(loss), net of tax
|
(192.6
|
)
|
|
3.7
|
|
|
(1.4
|
)
|
|
(1.1
|
)
|
|
(191.4
|
)
|
Ending balance
|
(483.1
|
)
|
|
(106.0
|
)
|
|
2.9
|
|
|
0.4
|
|
|
(585.8
|
)
|
|
For the three months ended September 30, 2017
|
|||||||||||||
$ in millions
|
Foreign currency translation
|
|
Employee benefit plans
|
|
Equity method investments
|
|
Available-for-sale investments
|
|
Total
|
|||||
Other comprehensive income/(loss) net of tax:
|
|
|
|
|
|
|
|
|
|
|||||
Currency translation differences on investments in foreign subsidiaries
|
142.4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
142.4
|
|
Other comprehensive income, net
|
—
|
|
|
5.3
|
|
|
(0.1
|
)
|
|
(1.9
|
)
|
|
3.3
|
|
Other comprehensive income/(loss), net of tax
|
142.4
|
|
|
5.3
|
|
|
(0.1
|
)
|
|
(1.9
|
)
|
|
145.7
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Beginning balance
|
(469.9
|
)
|
|
(138.5
|
)
|
|
6.0
|
|
|
8.2
|
|
|
(594.2
|
)
|
Other comprehensive income/(loss), net of tax
|
142.4
|
|
|
5.3
|
|
|
(0.1
|
)
|
|
(1.9
|
)
|
|
145.7
|
|
Ending balance
|
(327.5
|
)
|
|
(133.2
|
)
|
|
5.9
|
|
|
6.3
|
|
|
(448.5
|
)
|
|
For the nine months ended September 30, 2017
|
|||||||||||||
$ in millions
|
Foreign currency translation
|
|
Employee benefit plans
|
|
Equity method investments
|
|
Available-for-sale investments
|
|
Total
|
|||||
Other comprehensive income/(loss) net of tax:
|
|
|
|
|
|
|
|
|
|
|||||
Currency translation differences on investments in foreign subsidiaries
|
352.4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
352.4
|
|
Other comprehensive income, net
|
—
|
|
|
6.0
|
|
|
1.1
|
|
|
1.3
|
|
|
8.4
|
|
Other comprehensive income/(loss), net of tax
|
352.4
|
|
|
6.0
|
|
|
1.1
|
|
|
1.3
|
|
|
360.8
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Beginning balance
|
(679.9
|
)
|
|
(139.2
|
)
|
|
4.8
|
|
|
5.0
|
|
|
(809.3
|
)
|
Other comprehensive income/(loss), net of tax
|
352.4
|
|
|
6.0
|
|
|
1.1
|
|
|
1.3
|
|
|
360.8
|
|
Ending balance
|
(327.5
|
)
|
|
(133.2
|
)
|
|
5.9
|
|
|
6.3
|
|
|
(448.5
|
)
|
$ in millions
|
For the three months ended September 30, 2018
|
|
For the nine months ended September 30, 2018
|
||
North America
|
835.5
|
|
|
2,483.8
|
|
EMEA
|
442.8
|
|
|
1,369.1
|
|
Asia-Pacific
|
63.5
|
|
|
205.3
|
|
Total operating revenues
|
1,341.8
|
|
|
4,058.2
|
|
|
For the nine months ended September 30, 2018
|
|
For the nine months ended September 30, 2017
|
|||||||||||
Millions of shares, except fair values
|
Time- Vested
|
|
Performance- Vested
|
|
Weighted Average Grant Date Fair Value ($)
|
|
Time- Vested
|
|
Performance- Vested
|
|||||
Unvested at the beginning of period
|
12.0
|
|
|
0.9
|
|
|
31.52
|
|
|
12.1
|
|
|
0.8
|
|
Granted during the period
|
5.5
|
|
|
0.4
|
|
|
32.09
|
|
|
5.3
|
|
|
0.3
|
|
Forfeited during the period
|
(0.2
|
)
|
|
—
|
|
|
31.71
|
|
|
(0.4
|
)
|
|
—
|
|
Vested and distributed during the period
|
(4.6
|
)
|
|
(0.4
|
)
|
|
32.14
|
|
|
(4.8
|
)
|
|
(0.2
|
)
|
Unvested at the end of the period
|
12.7
|
|
|
0.9
|
|
|
31.55
|
|
|
12.2
|
|
|
0.9
|
|
|
For the three months ended September 30,
|
|
For the nine months ended September 30,
|
||||||||||||
In millions, except per share data
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Net income
|
|
$281.2
|
|
|
|
$274.6
|
|
|
|
$788.3
|
|
|
|
$738.4
|
|
Net (income)/loss attributable to noncontrolling interests in consolidated entities
|
(11.6
|
)
|
|
(7.1
|
)
|
|
(19.7
|
)
|
|
(19.3
|
)
|
||||
Net income attributable to Invesco Ltd.
|
269.6
|
|
|
267.5
|
|
|
768.6
|
|
|
719.1
|
|
||||
Less: Allocation of earnings to restricted shares
|
(8.3
|
)
|
|
(8.0
|
)
|
|
(23.3
|
)
|
|
(21.6
|
)
|
||||
Net income attributable to common shareholders
|
|
$261.3
|
|
|
|
$259.5
|
|
|
|
$745.3
|
|
|
|
$697.5
|
|
|
|
|
|
|
|
|
|
||||||||
Invesco Ltd:
|
|
|
|
|
|
|
|
||||||||
Weighted average shares outstanding - basic
|
414.3
|
|
|
410.0
|
|
|
413.2
|
|
|
409.2
|
|
||||
Dilutive effect of non-participating share-based awards
|
0.1
|
|
|
0.5
|
|
|
0.2
|
|
|
0.4
|
|
||||
Weighted average shares outstanding - diluted
|
414.4
|
|
|
410.5
|
|
|
413.4
|
|
|
409.6
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Common shareholders:
|
|
|
|
|
|
|
|
||||||||
Weighted average shares outstanding - basic
|
414.3
|
|
|
410.0
|
|
|
413.2
|
|
|
409.2
|
|
||||
Less: Weighted average restricted shares
|
(12.7
|
)
|
|
(12.2
|
)
|
|
(12.5
|
)
|
|
(12.3
|
)
|
||||
Weighted average common shares outstanding - basic
|
401.6
|
|
|
397.8
|
|
|
400.7
|
|
|
396.9
|
|
||||
Dilutive effect of non-participating share-based awards
|
0.1
|
|
|
0.5
|
|
|
0.2
|
|
|
0.4
|
|
||||
Weighted average common shares outstanding - diluted
|
401.7
|
|
|
398.3
|
|
|
400.9
|
|
|
397.3
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Earnings per share:
|
|
|
|
|
|
|
|
||||||||
Basic earnings per share
|
|
$0.65
|
|
|
|
$0.65
|
|
|
|
$1.86
|
|
|
|
$1.76
|
|
Diluted earnings per share
|
|
$0.65
|
|
|
|
$0.65
|
|
|
|
$1.86
|
|
|
|
$1.76
|
|
|
As of
|
||||
$ in millions
|
September 30, 2018
|
|
December 31, 2017
|
||
Cash and cash equivalents of CIP
|
282.8
|
|
|
511.3
|
|
Accounts receivable and other assets of CIP
|
56.7
|
|
|
131.5
|
|
Investments of CIP
|
6,074.6
|
|
|
5,658.0
|
|
Less: Debt of CIP
|
(4,820.5
|
)
|
|
(4,799.8
|
)
|
Less: Other liabilities of CIP
|
(315.8
|
)
|
|
(498.8
|
)
|
Less: Retained earnings
|
7.0
|
|
|
16.7
|
|
Less: Accumulated other comprehensive income, net of tax
|
(6.9
|
)
|
|
(16.6
|
)
|
Less: Equity attributable to redeemable noncontrolling interests
|
(423.2
|
)
|
|
(243.2
|
)
|
Less: Equity attributable to nonredeemable noncontrolling interests
|
(330.8
|
)
|
|
(258.6
|
)
|
Invesco's net interests in CIP
|
523.9
|
|
|
500.5
|
|
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
||||||||
$ in millions
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||
Total operating revenues
|
(4.7
|
)
|
|
(6.2
|
)
|
|
(18.8
|
)
|
|
(25.7
|
)
|
Total operating expenses
|
5.1
|
|
|
4.2
|
|
|
14.5
|
|
|
5.2
|
|
Operating income
|
(9.8
|
)
|
|
(10.4
|
)
|
|
(33.3
|
)
|
|
(30.9
|
)
|
Equity in earnings of unconsolidated affiliates
|
(3.4
|
)
|
|
(5.7
|
)
|
|
(9.8
|
)
|
|
(8.4
|
)
|
Other gains and losses, net
|
8.0
|
|
|
(9.8
|
)
|
|
16.3
|
|
|
(32.4
|
)
|
Interest and dividend income of CIP
|
71.0
|
|
|
52.7
|
|
|
196.0
|
|
|
156.4
|
|
Interest expense of CIP
|
(51.7
|
)
|
|
(36.3
|
)
|
|
(137.5
|
)
|
|
(117.3
|
)
|
Other gains/(losses) of CIP, net
|
8.8
|
|
|
15.3
|
|
|
(2.3
|
)
|
|
53.4
|
|
Income before income taxes
|
22.9
|
|
|
5.8
|
|
|
29.4
|
|
|
20.8
|
|
Net income
|
22.9
|
|
|
5.8
|
|
|
29.4
|
|
|
20.8
|
|
Net (income)/loss attributable to noncontrolling interests in consolidated entities
|
(11.6
|
)
|
|
(7.1
|
)
|
|
(19.7
|
)
|
|
(19.3
|
)
|
Net income attributable to Invesco Ltd.
|
11.3
|
|
|
(1.3
|
)
|
|
9.7
|
|
|
1.5
|
|
|
For the nine months ended September 30, 2018
|
|
For the nine months ended September 30, 2018
|
|
For the nine months ended September 30, 2017
|
|||
$ in millions
|
VIEs
|
|
VOEs
|
|
VIEs
|
|||
Cash and cash equivalents of CIP
|
17.4
|
|
|
—
|
|
|
14.9
|
|
Accounts receivable and other assets of CIP
|
6.2
|
|
|
1.9
|
|
|
8.5
|
|
Investments of CIP
|
800.6
|
|
|
172.6
|
|
|
331.9
|
|
Total assets
|
824.2
|
|
|
174.5
|
|
|
355.3
|
|
|
|
|
|
|
|
|||
Debt of CIP
|
555.2
|
|
|
—
|
|
|
15.1
|
|
Other liabilities of CIP
|
37.7
|
|
|
—
|
|
|
105.1
|
|
Total liabilities
|
592.9
|
|
|
—
|
|
|
120.2
|
|
Total equity
|
231.3
|
|
|
174.5
|
|
|
235.1
|
|
Total liabilities and equity
|
824.2
|
|
|
174.5
|
|
|
355.3
|
|
|
For the nine months ended September 30, 2018
|
|
For the nine months ended September 30, 2017
|
|||||
$ in millions
|
VIEs
|
|
VIEs
|
|
VOEs
|
|||
Cash and cash equivalents of CIP
|
104.9
|
|
|
15.7
|
|
|
—
|
|
Accounts receivable and other assets of CIP
|
26.2
|
|
|
4.1
|
|
|
0.2
|
|
Investments of CIP
|
912.4
|
|
|
242.9
|
|
|
49.8
|
|
Total assets
|
1,043.5
|
|
|
262.7
|
|
|
50.0
|
|
|
|
|
|
|
|
|||
Debt of CIP
|
938.3
|
|
|
4.2
|
|
|
—
|
|
Other liabilities of CIP
|
9.0
|
|
|
3.1
|
|
|
—
|
|
Total liabilities
|
947.3
|
|
|
7.3
|
|
|
—
|
|
Total equity
|
96.2
|
|
|
255.4
|
|
|
50.0
|
|
Total liabilities and equity
|
1,043.5
|
|
|
262.7
|
|
|
50.0
|
|
|
As of September 30, 2018
|
|||||||||||||
$ in millions
|
Fair Value Measurements
|
|
Quoted Prices in Active Markets for Identical Assets (Level 1)
|
|
Significant Other Observable Inputs (Level 2)
|
|
Significant Unobservable Inputs
(Level 3)
|
|
Investments Measured at NAV as a practical expedient
|
|||||
Assets:
|
|
|
|
|
|
|
|
|
|
|||||
Bank loans
|
5,110.6
|
|
|
—
|
|
|
5,110.6
|
|
|
—
|
|
|
—
|
|
Bonds
|
505.6
|
|
|
—
|
|
|
505.6
|
|
|
—
|
|
|
—
|
|
Equity securities
|
243.0
|
|
|
239.2
|
|
|
3.8
|
|
|
—
|
|
|
—
|
|
Equity and fixed income mutual funds
|
18.3
|
|
|
18.3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Investments in other private equity funds
|
185.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
185.0
|
|
Real estate investments
|
12.1
|
|
|
—
|
|
|
—
|
|
|
12.1
|
|
|
—
|
|
Total assets at fair value
|
6,074.6
|
|
|
257.5
|
|
|
5,620.0
|
|
|
12.1
|
|
|
185.0
|
|
|
As of December 31, 2017
|
|||||||||||||
$ in millions
|
Fair Value Measurements
|
|
Quoted Prices in Active Markets for Identical Assets (Level 1)
|
|
Significant Other Observable Inputs (Level 2)
|
|
Significant Unobservable Inputs
(Level 3)
|
|
Investments Measured at NAV as a practical expedient
|
|||||
Assets:
|
|
|
|
|
|
|
|
|
|
|||||
Bank loans
|
4,894.2
|
|
|
—
|
|
|
4,894.2
|
|
|
—
|
|
|
—
|
|
Bonds
|
302.0
|
|
|
—
|
|
|
302.0
|
|
|
—
|
|
|
—
|
|
Equity securities
|
203.2
|
|
|
198.8
|
|
|
4.4
|
|
|
—
|
|
|
—
|
|
Equity and fixed income mutual funds
|
19.0
|
|
|
19.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Investments in other private equity funds
|
163.4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
163.4
|
|
Real estate investments
|
76.2
|
|
|
—
|
|
|
—
|
|
|
76.2
|
|
|
—
|
|
Total assets at fair value
|
5,658.0
|
|
|
217.8
|
|
|
5,200.6
|
|
|
76.2
|
|
|
163.4
|
|
|
Three months ended September 30, 2018
|
|
Nine months ended September 30, 2018
|
||
$ in millions
|
Level 3 Assets
|
|
Level 3 Assets
|
||
Beginning balance
|
52.0
|
|
|
76.2
|
|
Purchases
|
—
|
|
|
13.0
|
|
Sales
|
(39.3
|
)
|
|
(84.8
|
)
|
Gains and losses included in the Condensed Consolidated Statements of Income*
|
(0.6
|
)
|
|
7.7
|
|
Ending balance
|
12.1
|
|
|
12.1
|
|
|
Three months ended September 30, 2017
|
|
Nine months ended September 30, 2017
|
||
$ in millions
|
Level 3 Assets
|
|
Level 3 Assets
|
||
Beginning balance
|
59.9
|
|
|
40.7
|
|
Purchases
|
—
|
|
|
15.1
|
|
Sales
|
—
|
|
|
(5.1
|
)
|
Gains and losses included in the Condensed Consolidated Statements of Income*
|
3.6
|
|
|
12.8
|
|
Ending balance
|
63.5
|
|
|
63.5
|
|
*
|
Included in gains/(losses) of CIP, net in the Condensed Consolidated Statements of Income for the
three and nine months ended
September 30, 2018
are
$0.5 million
and
$0.8 million
respectively, in net unrealized
losses
attributable to investments still held at
September 30, 2018
by CIP (for the
three and nine months ended
September 30, 2017
:
$3.6 million
and
$12.4 million
respectively, in net unrealized gains are attributable to investments still held at
September 30, 2017
by CIP).
|
Assets and Liabilities
|
|
Fair Value at December 31, 2017 ($ in millions)
|
|
Valuation Technique
|
|
Unobservable Inputs
|
|
Range
|
Weighted Average (by fair value)
|
||
Real Estate Investments
|
|
$76.2
|
|
Discounted Cash Flow
|
|
Discount rate
|
|
7% - 33%
|
|
17.00
|
%
|
|
|
|
|
|
|
Terminal capitalization rate
|
|
5.30
|
%
|
5.30
|
%
|
|
|
|
|
|
|
Average rent growth rate
|
|
2% - 3%
|
|
2.50
|
%
|
•
|
For real estate investments, a change in the average rent growth rate would result in a directionally-opposite change in the assumptions for discount rate and terminal capitalization rate. Significant increases in the average growth rate would result in significantly higher fair values. Significant increases in the assumptions for discount rate and terminal capitalization rate in isolation would result in significantly lower fair value measurements.
|
|
|
September 30, 2018
|
|
December 31, 2017
|
||||||||||||
in millions, except term data
|
|
Fair Value
|
|
Total Unfunded Commitments
|
|
Weighted Average Remaining Term
(2)
|
|
Fair Value
|
|
Total Unfunded Commitments
|
|
Weighted Average Remaining Term
(2)
|
||||
Private equity funds
(1)
|
|
$185.0
|
|
$83.0
|
|
5.5 years
|
|
|
$163.4
|
|
|
|
$53.9
|
|
|
5.5 years
|
(1)
|
These investments are not subject to redemption; however, for certain funds, the investors may sell or transfer their interest, which may require approval by the general partner of the underlying funds.
|
(2)
|
These investments are expected to be returned through distributions as a result of liquidations of the funds' underlying assets over the weighted average periods indicated.
|
|
Three months ended September 30,
|
|
Nine months ended
September 30, |
||||||||
$ in millions
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||
Affiliated operating revenues:
|
|
|
|
|
|
|
|
||||
Investment management fees
|
915.6
|
|
|
937.0
|
|
|
2,757.1
|
|
|
2,654.5
|
|
Service and distribution fees
|
238.9
|
|
|
217.2
|
|
|
723.9
|
|
|
634.1
|
|
Performance fees
|
0.8
|
|
|
40.5
|
|
|
7.6
|
|
|
52.1
|
|
Other
|
47.6
|
|
|
14.9
|
|
|
148.3
|
|
|
46.0
|
|
Total affiliated operating revenues
|
1,202.9
|
|
|
1,209.6
|
|
|
3,636.9
|
|
|
3,386.7
|
|
$ in millions
|
September 30, 2018
|
|
December 31, 2017
|
||
Affiliated asset balances:
|
|
|
|
||
Cash and cash equivalents
|
404.2
|
|
|
875.5
|
|
Unsettled fund receivables
|
376.2
|
|
|
204.0
|
|
Accounts receivable
|
342.5
|
|
|
359.9
|
|
Investments
|
602.6
|
|
|
608.5
|
|
Assets held for policyholders
|
12,267.8
|
|
|
12,444.2
|
|
Other assets
|
3.4
|
|
|
9.2
|
|
Total affiliated asset balances
|
13,996.7
|
|
|
14,501.3
|
|
|
|
|
|
||
Affiliated liability balances:
|
|
|
|
||
Accrued compensation and benefits
|
74.7
|
|
|
90.7
|
|
Accounts payable and accrued expenses
|
64.3
|
|
|
64.5
|
|
Unsettled fund payables
|
184.2
|
|
|
288.8
|
|
Total affiliated liability balances
|
323.2
|
|
|
444.0
|
|
|
Index expressed in currency
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
||||||||
Equity Index
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|||||
S&P 500
|
U.S. Dollar
|
7.2
|
%
|
|
4.0
|
%
|
|
9.0
|
%
|
|
12.5
|
%
|
FTSE 100
|
British Pound
|
(1.7
|
)%
|
|
0.8
|
%
|
|
(2.3
|
)%
|
|
3.2
|
%
|
FTSE 100
|
U.S. Dollar
|
(2.8
|
)%
|
|
3.8
|
%
|
|
(5.8
|
)%
|
|
12.0
|
%
|
Nikkei 225
|
Japanese Yen
|
8.1
|
%
|
|
1.6
|
%
|
|
6.0
|
%
|
|
6.5
|
%
|
Nikkei 225
|
U.S. Dollar
|
5.6
|
%
|
|
1.4
|
%
|
|
5.1
|
%
|
|
10.3
|
%
|
MSCI Emerging Markets
|
U.S. Dollar
|
(2.0
|
)%
|
|
7.0
|
%
|
|
(9.5
|
)%
|
|
25.5
|
%
|
Bond Index
|
|
|
|
|
|
|
|
|
||||
Barclays U.S. Aggregate Bond
|
U.S. Dollar
|
0.0
|
%
|
|
0.9
|
%
|
|
(1.6
|
)%
|
|
3.1
|
%
|
•
|
Invesco Great Wall (IGW) won numerous industry awards during the Asset Management Association of China's inaugural event to mark the 20
th
anniversary of the establishment of China's fund industry. IGW was recognized in two categories: Outstanding Fund Management Company & Management Team for its successive management teams (Chairman, CEO, Chief Supervisor) since launch, and Outstanding Products & Management Team for its IGW Select Equity Mixed Securities Fund, IGW Domestic Demand Growth Mixed Securities Fund and IGW DingYi Mixed Securities Fund.
|
•
|
Invesco was recognized as being among the top three investment managers in servicing institutional investors in Asia by market intelligence consultant Greenwich Associates.
|
•
|
Invesco won the 2018 Multi Asset Manager of the year award, which was given at the LAPF Investment Awards held in London. This award recognizes the combined capabilities of the Henley Multi-Asset team, Invesco Global Asset Allocation (IBRA) team and IQS Balanced Solutions team, highlighting the breadth of our multi-asset offering.
|
•
|
Invesco Wholesalers Todd Matlack and Lloyd Silk were named to the National Association of Plan Advisors’ 2018 Top 100 DC Wholesalers. These “DC Wingmen” made the cut from a pool of about 1,400 wholesalers, based on voting by thousands of NAPA members.
|
•
|
Invesco launched a new suite of factor ETFs which brings together some of our best passive and active capabilities. The suite includes eight products and leverages the expertise of our Fixed Income team and our new Indexing team.
|
•
|
Invesco launched the Invesco Perpetual Summit Growth range - five multi-asset funds designed to help financial advisers in the UK match the risk profiles of their clients by accessing the breadth of Invesco's diverse investment capabilities.
|
•
|
Invesco launched Canada’s first equal-weight European large-cap ETF providing equal-weight exposure to the companies that make up the S&P Europe 350 Index. Invesco S&P Europe 350 Equal Weight Index ETF (EQE) offers investors the potential benefits of balanced exposure, disciplined rebalancing and higher return potential.
|
•
|
Invesco earned an A+ rating in PRI (Principles for Responsible Investment) for its overall approach to responsible investment for second consecutive year.
|
•
|
Invesco Real Estate signed the single largest asset deal in its European history.
|
(1)
|
Source for global ranking: P&I Research, Morningstar (AUM as of June 2018) and Simfund (AUM as of Dec. 31, 2017), Advisor Brandscape. Source for US ranking: Invesco and Strategic Insight. Based on AUM of US domiciled long-term open-end, closed-end, exchange traded funds, money market funds, and VI assets as measured at the parent company level. It does not include funds that are not US domiciled or any other categories of investment vehicles not expressly listed, such as, but not limited to SA, SMA and UIT assets.
|
•
|
Results of Operations (
three and nine months ended
September 30, 2018
compared to
three and nine months ended
September 30, 2017
);
|
•
|
Schedule of Non-GAAP Information;
|
•
|
Balance Sheet Discussion; and
|
•
|
Liquidity and Capital Resources.
|
$ in millions, other than per share amounts, operating margins and AUM
|
Three months ended September 30,
|
|
Nine months ended
September 30, |
||||||||
U.S. GAAP Financial Measures Summary
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||
Operating revenues
|
1,341.8
|
|
|
1,337.7
|
|
|
4,058.2
|
|
|
3,784.7
|
|
Operating income
|
322.1
|
|
|
360.3
|
|
|
974.5
|
|
|
936.5
|
|
Operating margin
|
24.0
|
%
|
|
26.9
|
%
|
|
24.0
|
%
|
|
24.7
|
%
|
Net income attributable to Invesco Ltd.
|
269.6
|
|
|
267.5
|
|
|
768.6
|
|
|
719.1
|
|
Diluted EPS
|
0.65
|
|
|
0.65
|
|
|
1.86
|
|
|
1.76
|
|
|
|
|
|
|
|
|
|
||||
Non-GAAP Financial Measures Summary
|
|
|
|
|
|
|
|
||||
Net revenues
(1)
|
966.9
|
|
|
976.6
|
|
|
2,898.8
|
|
|
2,750.0
|
|
Adjusted operating income
(2)
|
357.8
|
|
|
402.4
|
|
|
1,091.6
|
|
|
1,084.7
|
|
Adjusted operating margin
(2)
|
37.0
|
%
|
|
41.2
|
%
|
|
37.7
|
%
|
|
39.4
|
%
|
Adjusted net income attributable to Invesco Ltd.
(3)
|
274.4
|
|
|
291.8
|
|
|
821.4
|
|
|
806.8
|
|
Adjusted diluted EPS
(3)
|
0.66
|
|
|
0.71
|
|
|
1.99
|
|
|
1.97
|
|
|
|
|
|
|
|
|
|
||||
Assets Under Management
|
|
|
|
|
|
|
|
||||
Ending AUM (billions)
|
980.9
|
|
|
917.5
|
|
|
980.9
|
|
|
917.5
|
|
Average AUM (billions)
|
985.1
|
|
|
890.8
|
|
|
970.1
|
|
|
856.6
|
|
(1)
|
Net revenues is a non-GAAP financial measure. Net revenues are operating revenues plus the net revenues of Invesco Great Wall, less third-party distribution, service and advisory expenses, plus management and performance fees earned from CIP. See "Schedule of Non-GAAP Information," for the reconciliation of operating revenues to net revenues.
|
(2)
|
Adjusted operating income and adjusted operating margin are non-GAAP financial measures. Adjusted operating margin is adjusted operating income divided by net revenues. Adjusted operating income includes operating income plus the net operating income of Invesco Great Wall, the operating income impact of the consolidation of investment products, business combination-related adjustments, compensation expense related to market valuation changes in deferred compensation plans, and other reconciling items. See "Schedule of Non-GAAP Information," for the reconciliation of operating income to adjusted operating income.
|
(3)
|
Adjusted net income attributable to Invesco Ltd. and adjusted diluted EPS are non-GAAP financial measures. Adjusted net income attributable to Invesco Ltd. is net income attributable to Invesco Ltd. adjusted to exclude the impact of CIP on net income attributable to Invesco Ltd., add back business combination-related adjustments, the net income impact of deferred compensation plans and other reconciling items. Adjustments made to net income attributable to Invesco Ltd. are tax-effected in arriving at adjusted net income attributable to Invesco Ltd. By calculation, adjusted diluted EPS is adjusted net income attributable to Invesco Ltd. divided by the weighted average number of shares outstanding (for diluted EPS). See "Schedule of Non-GAAP Information," for the reconciliation of net income attributable to Invesco Ltd. to adjusted net income attributable to Invesco Ltd.
|
|
Benchmark Comparison
|
|
Peer Group Comparison
|
||||||||||
|
% of AUM Ahead of Benchmark
|
|
% of AUM In Top Half of Peer Group
|
||||||||||
|
1yr
|
3yr
|
5yr
|
|
1yr
|
3yr
|
5yr
|
||||||
Equities
|
|
|
|
|
|
|
|
||||||
U.S. Core
|
14
|
%
|
0
|
%
|
13
|
%
|
|
26
|
%
|
0
|
%
|
7
|
%
|
U.S. Growth
|
31
|
%
|
40
|
%
|
40
|
%
|
|
9
|
%
|
56
|
%
|
36
|
%
|
U.S. Value
|
35
|
%
|
50
|
%
|
50
|
%
|
|
35
|
%
|
50
|
%
|
50
|
%
|
Sector Funds
|
49
|
%
|
57
|
%
|
53
|
%
|
|
49
|
%
|
34
|
%
|
29
|
%
|
U.K.
|
6
|
%
|
8
|
%
|
70
|
%
|
|
2
|
%
|
7
|
%
|
6
|
%
|
Canadian
|
5
|
%
|
11
|
%
|
0
|
%
|
|
5
|
%
|
11
|
%
|
0
|
%
|
Asian
|
74
|
%
|
75
|
%
|
90
|
%
|
|
57
|
%
|
87
|
%
|
85
|
%
|
Continental European
|
54
|
%
|
85
|
%
|
99
|
%
|
|
35
|
%
|
66
|
%
|
79
|
%
|
Global
|
40
|
%
|
37
|
%
|
50
|
%
|
|
42
|
%
|
50
|
%
|
67
|
%
|
Global Ex U.S. and Emerging Markets
|
1
|
%
|
17
|
%
|
12
|
%
|
|
0
|
%
|
17
|
%
|
4
|
%
|
Fixed Income
|
|
|
|
|
|
|
|
||||||
Money Market
|
98
|
%
|
99
|
%
|
99
|
%
|
|
86
|
%
|
87
|
%
|
98
|
%
|
U.S. Fixed Income
|
58
|
%
|
90
|
%
|
88
|
%
|
|
65
|
%
|
78
|
%
|
86
|
%
|
Global Fixed Income
|
34
|
%
|
45
|
%
|
48
|
%
|
|
38
|
%
|
36
|
%
|
41
|
%
|
Stable Value
|
100
|
%
|
100
|
%
|
100
|
%
|
|
100
|
%
|
100
|
%
|
100
|
%
|
Other
|
|
|
|
|
|
|
|
||||||
Alternatives
|
35
|
%
|
66
|
%
|
66
|
%
|
|
41
|
%
|
46
|
%
|
75
|
%
|
Balanced
|
41
|
%
|
46
|
%
|
46
|
%
|
|
31
|
%
|
94
|
%
|
85
|
%
|
(1)
|
Excludes passive products, closed-end funds, private equity limited partnerships, non-discretionary funds, unit investment trusts, fund of funds with component funds managed by Invesco, stable value building block funds and CDOs. Certain funds and products were excluded from the analysis because of limited benchmark or peer group data. Had these been available, results may have been different. These results are preliminary and subject to revision. AUM measured in the one, three, and five year quartile rankings represents 52%, 52%, and 49% of total Invesco AUM, respectively, and AUM measured versus benchmark on a one, three, and five year basis represents 65%, 63%, and 58% of total Invesco AUM as of 9/30/18. Peer group rankings are sourced from a widely-used third party ranking agency in each fund’s market (Lipper, Morningstar, IA, Russell, Mercer, eVestment Alliance, SITCA, Value Research) and asset-weighted in USD. Rankings are as of prior quarter-end for most institutional products and prior month-end for Australian retail funds due to their late release by third parties. Rankings are calculated against all funds in each peer group. Rankings for the primary share class of the most representative fund in each composite are applied to all products within each composite. Performance assumes the reinvestment of dividends. Past performance is not indicative of future results and may not reflect an investor’s experience.
|
Spot Foreign Exchange Rates
|
September 30, 2018
|
|
June 30, 2018
|
|
December 31, 2017
|
|
September 30, 2017
|
|
June 30, 2017
|
|
December 31, 2016
|
||||||
Pound Sterling ($ per £)
|
1.304
|
|
|
1.320
|
|
|
1.353
|
|
|
1.342
|
|
|
1.299
|
|
|
1.236
|
|
Canadian Dollar (CAD per $)
|
1.292
|
|
|
1.316
|
|
|
1.253
|
|
|
1.250
|
|
|
1.299
|
|
|
1.341
|
|
Japan (¥ per $)
|
113.550
|
|
|
110.760
|
|
|
112.645
|
|
|
112.575
|
|
|
112.375
|
|
|
116.600
|
|
Euro ($ per Euro)
|
1.161
|
|
|
1.168
|
|
|
1.201
|
|
|
1.182
|
|
|
1.140
|
|
|
1.054
|
|
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
||||||||
Average Foreign Exchange Rates
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||
Pound Sterling ($ per £)
|
1.303
|
|
|
1.308
|
|
|
1.352
|
|
|
1.275
|
|
Canadian Dollar (CAD per $)
|
1.307
|
|
|
1.253
|
|
|
1.287
|
|
|
1.306
|
|
Japan (¥ per $)
|
111.448
|
|
|
110.906
|
|
|
109.586
|
|
|
111.888
|
|
Euro ($ per Euro)
|
1.163
|
|
|
1.174
|
|
|
1.195
|
|
|
1.113
|
|
|
For the three months ended September 30,
|
||||||||||||||||
|
2018
|
|
2017
|
||||||||||||||
$ in billions
|
Total AUM
|
|
Active
|
|
Passive
|
|
Total AUM
|
|
Active
|
|
Passive
|
||||||
June 30
|
963.3
|
|
|
722.1
|
|
|
241.2
|
|
|
858.3
|
|
|
701.7
|
|
|
156.6
|
|
Long-term inflows
|
43.6
|
|
|
28.3
|
|
|
15.3
|
|
|
45.0
|
|
|
35.1
|
|
|
9.9
|
|
Long-term outflows
|
(54.8
|
)
|
|
(39.2
|
)
|
|
(15.6
|
)
|
|
(40.9
|
)
|
|
(32.3
|
)
|
|
(8.6
|
)
|
Long-term net flows
|
(11.2
|
)
|
|
(10.9
|
)
|
|
(0.3
|
)
|
|
4.1
|
|
|
2.8
|
|
|
1.3
|
|
Net flows in non-management fee earning AUM
|
3.2
|
|
|
—
|
|
|
3.2
|
|
|
0.9
|
|
|
—
|
|
|
0.9
|
|
Net flows in institutional money market funds
|
3.1
|
|
|
3.1
|
|
|
—
|
|
|
5.4
|
|
|
5.4
|
|
|
—
|
|
Total net flows
|
(4.9
|
)
|
|
(7.8
|
)
|
|
2.9
|
|
|
10.4
|
|
|
8.2
|
|
|
2.2
|
|
Reinvested distributions
(1)
|
1.7
|
|
|
1.7
|
|
|
—
|
|
|
1.1
|
|
|
1.1
|
|
|
—
|
|
Market gains and losses
(1)
|
14.3
|
|
|
4.7
|
|
|
9.6
|
|
|
15.0
|
|
|
9.3
|
|
|
5.7
|
|
Acquisitions
(5)
|
9.5
|
|
|
9.3
|
|
|
0.2
|
|
|
26.0
|
|
|
—
|
|
|
26.0
|
|
Foreign currency translation
|
(3.0
|
)
|
|
(3.0
|
)
|
|
—
|
|
|
6.7
|
|
|
6.7
|
|
|
—
|
|
September 30
|
980.9
|
|
|
727.0
|
|
|
253.9
|
|
|
917.5
|
|
|
727.0
|
|
|
190.5
|
|
Average AUM
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Average long-term AUM
|
803.6
|
|
|
652.6
|
|
|
151.0
|
|
|
732.7
|
|
|
640.8
|
|
|
91.9
|
|
Average AUM
|
985.1
|
|
|
736.3
|
|
|
248.8
|
|
|
890.8
|
|
|
717.0
|
|
|
173.8
|
|
Revenue yield
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Gross revenue yield on AUM
(2)
|
55.8
|
|
|
70.2
|
|
|
14.3
|
|
|
60.7
|
|
|
71.6
|
|
|
16.0
|
|
Gross revenue yield on AUM before performance fees
(2)
|
55.4
|
|
|
69.7
|
|
|
14.3
|
|
|
58.7
|
|
|
69.2
|
|
|
16.0
|
|
Net revenue yield on AUM
(3)
|
39.3
|
|
|
47.7
|
|
|
14.3
|
|
|
43.9
|
|
|
50.6
|
|
|
16.0
|
|
Net revenue yield on AUM before performance fees
(3)
|
38.9
|
|
|
47.3
|
|
|
14.3
|
|
|
41.9
|
|
|
48.2
|
|
|
16.0
|
|
|
For the nine months ended September 30,
|
||||||||||||||||
|
2018
|
|
2017
|
||||||||||||||
$ in billions
|
Total AUM
|
|
Active
|
|
Passive
|
|
Total AUM
|
|
Active
|
|
Passive
|
||||||
December 31
|
937.6
|
|
|
738.6
|
|
|
199.0
|
|
|
812.9
|
|
|
668.5
|
|
|
144.4
|
|
Long-term inflows
|
154.6
|
|
|
104.0
|
|
|
50.6
|
|
|
132.5
|
|
|
106.1
|
|
|
26.4
|
|
Long-term outflows
|
(173.5
|
)
|
|
(124.8
|
)
|
|
(48.7
|
)
|
|
(126.5
|
)
|
|
(104.0
|
)
|
|
(22.5
|
)
|
Long-term net flows
|
(18.9
|
)
|
|
(20.8
|
)
|
|
1.9
|
|
|
6.0
|
|
|
2.1
|
|
|
3.9
|
|
Net flows in non-management fee earning AUM
|
3.7
|
|
|
—
|
|
|
3.7
|
|
|
1.4
|
|
|
—
|
|
|
1.4
|
|
Net flows in institutional money market funds
|
4.4
|
|
|
4.4
|
|
|
—
|
|
|
0.1
|
|
|
0.1
|
|
|
—
|
|
Total net flows
|
(10.8
|
)
|
|
(16.4
|
)
|
|
5.6
|
|
|
7.5
|
|
|
2.2
|
|
|
5.3
|
|
Reinvested distributions
(1)
|
3.0
|
|
|
3.0
|
|
|
—
|
|
|
1.1
|
|
|
1.1
|
|
|
—
|
|
Market gains and losses
(1)
|
12.4
|
|
|
(1.6
|
)
|
|
14.0
|
|
|
51.1
|
|
|
36.4
|
|
|
14.7
|
|
Transfers
(4)
|
—
|
|
|
1.5
|
|
|
(1.5
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
Acquisitions
(5)
|
47.6
|
|
|
10.5
|
|
|
37.1
|
|
|
26.0
|
|
|
—
|
|
|
26.0
|
|
Foreign currency translation
|
(8.9
|
)
|
|
(8.6
|
)
|
|
(0.3
|
)
|
|
18.9
|
|
|
18.8
|
|
|
0.1
|
|
September 30
|
980.9
|
|
|
727.0
|
|
|
253.9
|
|
|
917.5
|
|
|
727.0
|
|
|
190.5
|
|
Average AUM
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Average long-term AUM
|
797.5
|
|
|
660.2
|
|
|
137.3
|
|
|
706.7
|
|
|
624.8
|
|
|
81.9
|
|
Average AUM
|
970.1
|
|
|
739.4
|
|
|
230.7
|
|
|
856.6
|
|
|
695.9
|
|
|
160.7
|
|
Revenue yield
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Gross revenue yield on AUM
(2)
|
56.6
|
|
|
69.9
|
|
|
14.8
|
|
|
59.5
|
|
|
69.6
|
|
|
16.4
|
|
Gross revenue yield on AUM before performance fees
(2)
|
56.2
|
|
|
69.3
|
|
|
14.8
|
|
|
58.4
|
|
|
68.2
|
|
|
16.4
|
|
Net revenue yield on AUM
(3)
|
39.8
|
|
|
47.7
|
|
|
14.8
|
|
|
42.8
|
|
|
48.9
|
|
|
16.4
|
|
Net revenue yield on AUM before performance fees
(3)
|
39.4
|
|
|
47.1
|
|
|
14.8
|
|
|
41.6
|
|
|
47.4
|
|
|
16.4
|
|
(1)
|
In 2018 reinvested distributions are shown in a separate line in the AUM tables. For periods prior to the third quarter of 2017, reinvested distributions are included in market gains and losses.
|
(2)
|
Gross revenue yield on AUM is equal to annualized total operating revenues divided by average AUM, excluding Invesco Great Wall AUM. Prior to the third quarter 2018, management reflected its interests in Invesco Great Wall on a proportional consolidation basis, which was consistent with the presentation of our share of the AUM from these investments. Given the company's influence on Invesco Great Wall, a change in regulation allowing increased foreign ownership, and reaching agreement in principle to obtain majority stake of the joint venture, the company began reporting 100% of the flows and AUM for Invesco Great Wall beginning in the third quarter. For quarterly AUM, our share of the average AUM in the three and nine months ended
September 30, 2018
for Invesco Great Wall was
$22.4 billion
and
$13.7 billion
, respectively (
three and nine months ended
September 30, 2017
:
$8.6 billion
and $8.3 billion).
|
(3)
|
Net revenue yield on AUM is equal to annualized net revenues divided by average AUM. See “Schedule of Non-GAAP Information” for a reconciliation of operating revenues to net revenues.
|
(4)
|
During the
second quarter
of 2018,
$1.5 billion
of passive ETF AUM were reclassified to active AUM.
|
(5)
|
As of July 1, 2018, we began including 100% of Invesco Great Wall Fund Management Company, which added $9.5 billion in AUM during the third quarter
.
The acquisition of Guggenheim Investments' ETF business on April 6, 2018 added $38.1 billion in AUM during the second quarter.
|
$ in billions
|
Total
|
|
Retail
|
|
Institutional
|
|||
June 30, 2018
|
963.3
|
|
|
635.5
|
|
|
327.8
|
|
Long-term inflows
|
43.6
|
|
|
34.4
|
|
|
9.2
|
|
Long-term outflows
|
(54.8
|
)
|
|
(42.3
|
)
|
|
(12.5
|
)
|
Long-term net flows
|
(11.2
|
)
|
|
(7.9
|
)
|
|
(3.3
|
)
|
Net flows in non-management fee earning AUM
|
3.2
|
|
|
2.2
|
|
|
1.0
|
|
Net flows in institutional money market funds
|
3.1
|
|
|
4.5
|
|
|
(1.4
|
)
|
Total net flows
|
(4.9
|
)
|
|
(1.2
|
)
|
|
(3.7
|
)
|
Reinvested distributions
(2)
|
1.7
|
|
|
1.7
|
|
|
—
|
|
Market gains and losses
(2)
|
14.3
|
|
|
13.0
|
|
|
1.3
|
|
Acquisitions
(8)
|
9.5
|
|
|
4.5
|
|
|
5.0
|
|
Foreign currency translation
|
(3.0
|
)
|
|
(1.4
|
)
|
|
(1.6
|
)
|
September 30, 2018
|
980.9
|
|
|
652.1
|
|
|
328.8
|
|
|
|
|
|
|
|
|||
June 30, 2017
|
858.3
|
|
|
572.4
|
|
|
285.9
|
|
Long-term inflows
|
45.0
|
|
|
35.8
|
|
|
9.2
|
|
Long-term outflows
|
(40.9
|
)
|
|
(33.0
|
)
|
|
(7.9
|
)
|
Long-term net flows
|
4.1
|
|
|
2.8
|
|
|
1.3
|
|
Net flows in non-management fee earning AUM
|
0.9
|
|
|
(1.0
|
)
|
|
1.9
|
|
Net flows in institutional money market funds
|
5.4
|
|
|
—
|
|
|
5.4
|
|
Total net flows
|
10.4
|
|
|
1.8
|
|
|
8.6
|
|
Reinvested distributions
(2)
|
1.1
|
|
|
1.1
|
|
|
—
|
|
Market gains and losses
(2)
|
15.0
|
|
|
14.5
|
|
|
0.5
|
|
Acquisitions
|
26.0
|
|
|
26.0
|
|
|
—
|
|
Foreign currency translation
|
6.7
|
|
|
5.7
|
|
|
1.0
|
|
September 30, 2017
|
917.5
|
|
|
621.5
|
|
|
296.0
|
|
$ in billions
|
Total
|
|
Retail
|
|
Institutional
|
|||
December 31, 2017
|
937.6
|
|
|
637.0
|
|
|
300.6
|
|
Long-term inflows
|
154.6
|
|
|
120.4
|
|
|
34.2
|
|
Long-term outflows
|
(173.5
|
)
|
|
(137.1
|
)
|
|
(36.4
|
)
|
Long-term net flows
|
(18.9
|
)
|
|
(16.7
|
)
|
|
(2.2
|
)
|
Net flows in non-management fee earning AUM
|
3.7
|
|
|
3.7
|
|
|
—
|
|
Net flows in institutional money market funds
|
4.4
|
|
|
6.2
|
|
|
(1.8
|
)
|
Total net flows
|
(10.8
|
)
|
|
(6.8
|
)
|
|
(4.0
|
)
|
Reinvested distributions
(2)
|
3.0
|
|
|
3.0
|
|
|
—
|
|
Transfers
(7)
|
—
|
|
|
(29.5
|
)
|
|
29.5
|
|
Market gains and losses
(2)
|
12.4
|
|
|
11.5
|
|
|
0.9
|
|
Acquisitions
(8)
|
47.6
|
|
|
42.6
|
|
|
5.0
|
|
Foreign currency translation
|
(8.9
|
)
|
|
(5.7
|
)
|
|
(3.2
|
)
|
September 30, 2018
|
980.9
|
|
|
652.1
|
|
|
328.8
|
|
|
|
|
|
|
|
|||
December 31, 2016
|
812.9
|
|
|
526.5
|
|
|
286.4
|
|
Long-term inflows
|
132.5
|
|
|
107.4
|
|
|
25.1
|
|
Long-term outflows
|
(126.5
|
)
|
|
(99.7
|
)
|
|
(26.8
|
)
|
Long-term net flows
|
6.0
|
|
|
7.7
|
|
|
(1.7
|
)
|
Net flows in non-management fee earning AUM
|
1.4
|
|
|
(1.5
|
)
|
|
2.9
|
|
Net flows in institutional money market funds
|
0.1
|
|
|
—
|
|
|
0.1
|
|
Total net flows
|
7.5
|
|
|
6.2
|
|
|
1.3
|
|
Reinvested distributions
(2)
|
1.1
|
|
|
1.1
|
|
|
—
|
|
Market gains and losses
(2)
|
51.1
|
|
|
46.9
|
|
|
4.2
|
|
Acquisitions
|
26.0
|
|
|
26.0
|
|
|
—
|
|
Foreign currency translation
|
18.9
|
|
|
14.8
|
|
|
4.1
|
|
September 30, 2017
|
917.5
|
|
|
621.5
|
|
|
296.0
|
|
$ in billions
|
Total
|
|
Retail
|
|
Institutional
|
|||
June 30, 2018
|
241.2
|
|
|
225.6
|
|
|
15.6
|
|
Long-term inflows
|
15.3
|
|
|
15.3
|
|
|
—
|
|
Long-term outflows
|
(15.6
|
)
|
|
(15.6
|
)
|
|
—
|
|
Long-term net flows
|
(0.3
|
)
|
|
(0.3
|
)
|
|
—
|
|
Net flows in non-management fee earning AUM
|
3.2
|
|
|
2.2
|
|
|
1.0
|
|
Net flows in institutional money market funds
|
—
|
|
|
—
|
|
|
—
|
|
Total net flows
|
2.9
|
|
|
1.9
|
|
|
1.0
|
|
Market gains and losses
|
9.6
|
|
|
9.6
|
|
|
—
|
|
Acquisitions
(8)
|
0.2
|
|
|
0.2
|
|
|
—
|
|
Foreign currency translation
|
—
|
|
|
—
|
|
|
—
|
|
September 30, 2018
|
253.9
|
|
|
237.3
|
|
|
16.6
|
|
|
|
|
|
|
|
|||
June 30, 2017
|
156.6
|
|
|
141.5
|
|
|
15.1
|
|
Long-term inflows
|
9.9
|
|
|
9.9
|
|
|
—
|
|
Long-term outflows
|
(8.6
|
)
|
|
(8.6
|
)
|
|
—
|
|
Long-term net flows
|
1.3
|
|
|
1.3
|
|
|
—
|
|
Net flows in non-management fee earning AUM
|
0.9
|
|
|
(1.0
|
)
|
|
1.9
|
|
Net flows in institutional money market funds
|
—
|
|
|
—
|
|
|
—
|
|
Total net flows
|
2.2
|
|
|
0.3
|
|
|
1.9
|
|
Market gains and losses
|
5.7
|
|
|
5.6
|
|
|
0.1
|
|
Acquisitions
|
26.0
|
|
|
26.0
|
|
|
—
|
|
Foreign currency translation
|
—
|
|
|
—
|
|
|
—
|
|
September 30, 2017
|
190.5
|
|
|
173.4
|
|
|
17.1
|
|
$ in billions
|
Total
|
|
Retail
|
|
Institutional
|
|||
December 31, 2017
|
199.0
|
|
|
182.0
|
|
|
17.0
|
|
Long-term inflows
|
50.6
|
|
|
50.6
|
|
|
—
|
|
Long-term outflows
|
(48.7
|
)
|
|
(48.7
|
)
|
|
—
|
|
Long-term net flows
|
1.9
|
|
|
1.9
|
|
|
—
|
|
Net flows in non-management fee earning AUM
|
3.7
|
|
|
3.7
|
|
|
—
|
|
Net flows in institutional money market funds
|
—
|
|
|
—
|
|
|
—
|
|
Total net flows
|
5.6
|
|
|
5.6
|
|
|
—
|
|
Transfers
(7)
|
(1.5
|
)
|
|
(1.4
|
)
|
|
(0.1
|
)
|
Market gains and losses
|
14.0
|
|
|
14.4
|
|
|
(0.4
|
)
|
Acquisitions
(8)
|
37.1
|
|
|
37.1
|
|
|
—
|
|
Foreign currency translation
|
(0.3
|
)
|
|
(0.4
|
)
|
|
0.1
|
|
September 30, 2018
|
253.9
|
|
|
237.3
|
|
|
16.6
|
|
|
|
|
|
|
|
|||
December 31, 2016
|
144.4
|
|
|
128.8
|
|
|
15.6
|
|
Long-term inflows
|
26.4
|
|
|
26.4
|
|
|
—
|
|
Long-term outflows
|
(22.5
|
)
|
|
(21.3
|
)
|
|
(1.2
|
)
|
Long-term net flows
|
3.9
|
|
|
5.1
|
|
|
(1.2
|
)
|
Net flows in non-management fee earning AUM
|
1.4
|
|
|
(1.5
|
)
|
|
2.9
|
|
Net flows in institutional money market funds
|
—
|
|
|
—
|
|
|
—
|
|
Total net flows
|
5.3
|
|
|
3.6
|
|
|
1.7
|
|
Market gains and losses
|
14.7
|
|
|
15.0
|
|
|
(0.3
|
)
|
Acquisitions
|
26.0
|
|
|
26.0
|
|
|
—
|
|
Foreign currency translation
|
0.1
|
|
|
—
|
|
|
0.1
|
|
September 30, 2017
|
190.5
|
|
|
173.4
|
|
|
17.1
|
|
$ in billions
|
Total
|
|
Equity
|
|
Fixed Income
|
|
Balanced
|
|
Money Market
(5)
|
|
Alternatives
|
||||||
June 30, 2018
|
963.3
|
|
|
446.9
|
|
|
232.7
|
|
|
57.4
|
|
|
80.4
|
|
|
145.9
|
|
Long-term inflows
|
43.6
|
|
|
21.9
|
|
|
10.6
|
|
|
1.6
|
|
|
1.9
|
|
|
7.6
|
|
Long-term outflows
|
(54.8
|
)
|
|
(29.4
|
)
|
|
(10.9
|
)
|
|
(2.7
|
)
|
|
(1.3
|
)
|
|
(10.5
|
)
|
Long-term net flows
|
(11.2
|
)
|
|
(7.5
|
)
|
|
(0.3
|
)
|
|
(1.1
|
)
|
|
0.6
|
|
|
(2.9
|
)
|
Net flows in non-management fee earning AUM
|
3.2
|
|
|
2.3
|
|
|
0.9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net flows in institutional money market funds
|
3.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3.1
|
|
|
—
|
|
Total net flows
|
(4.9
|
)
|
|
(5.2
|
)
|
|
0.6
|
|
|
(1.1
|
)
|
|
3.7
|
|
|
(2.9
|
)
|
Reinvested distributions
(2)
|
1.7
|
|
|
1.2
|
|
|
0.3
|
|
|
0.1
|
|
|
—
|
|
|
0.1
|
|
Market gains and losses
(2)
|
14.3
|
|
|
14.5
|
|
|
(0.2
|
)
|
|
(0.2
|
)
|
|
0.1
|
|
|
0.1
|
|
Acquisitions
(8)
|
9.5
|
|
|
4.3
|
|
|
1.6
|
|
|
1.0
|
|
|
2.4
|
|
|
0.2
|
|
Foreign currency translation
|
(3.0
|
)
|
|
(1.1
|
)
|
|
(0.7
|
)
|
|
(0.2
|
)
|
|
(0.3
|
)
|
|
(0.7
|
)
|
September 30, 2018
|
980.9
|
|
|
460.6
|
|
|
234.3
|
|
|
57.0
|
|
|
86.3
|
|
|
142.7
|
|
Average AUM
|
985.1
|
|
|
459.2
|
|
|
235.4
|
|
|
57.8
|
|
|
89.4
|
|
|
143.3
|
|
% of total average AUM
|
100.0
|
%
|
|
46.6
|
%
|
|
23.9
|
%
|
|
5.9
|
%
|
|
9.1
|
%
|
|
14.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
June 30, 2017
|
858.3
|
|
|
391.2
|
|
|
208.9
|
|
|
52.2
|
|
|
76.1
|
|
|
129.9
|
|
Long-term inflows
|
45.0
|
|
|
19.1
|
|
|
12.4
|
|
|
3.1
|
|
|
1.3
|
|
|
9.1
|
|
Long-term outflows
|
(40.9
|
)
|
|
(22.5
|
)
|
|
(8.5
|
)
|
|
(3.0
|
)
|
|
(1.1
|
)
|
|
(5.8
|
)
|
Long-term net flows
|
4.1
|
|
|
(3.4
|
)
|
|
3.9
|
|
|
0.1
|
|
|
0.2
|
|
|
3.3
|
|
Net flows in non-management fee earning AUM
|
0.9
|
|
|
(1.0
|
)
|
|
1.9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net flows in institutional money market funds
|
5.4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5.4
|
|
|
—
|
|
Total net flows
|
10.4
|
|
|
(4.4
|
)
|
|
5.8
|
|
|
0.1
|
|
|
5.6
|
|
|
3.3
|
|
Reinvested distributions
(2)
|
1.1
|
|
|
0.8
|
|
|
0.2
|
|
|
0.1
|
|
|
—
|
|
|
—
|
|
Market gains and losses
(2)
|
15.0
|
|
|
13.1
|
|
|
0.9
|
|
|
0.6
|
|
|
0.1
|
|
|
0.3
|
|
Acquisitions
|
26.0
|
|
|
12.2
|
|
|
7.8
|
|
|
—
|
|
|
—
|
|
|
6.0
|
|
Foreign currency translation
|
6.7
|
|
|
3.3
|
|
|
0.9
|
|
|
1.2
|
|
|
0.1
|
|
|
1.2
|
|
September 30, 2017
|
917.5
|
|
|
416.2
|
|
|
224.5
|
|
|
54.2
|
|
|
81.9
|
|
|
140.7
|
|
Average AUM
|
890.8
|
|
|
403.2
|
|
|
217.2
|
|
|
53.8
|
|
|
80.7
|
|
|
135.9
|
|
% of total average AUM
|
100.0
|
%
|
|
45.3
|
%
|
|
24.4
|
%
|
|
6.0
|
%
|
|
9.1
|
%
|
|
15.3
|
%
|
$ in billions
|
Total
|
|
Equity
|
|
Fixed Income
|
|
Balanced
|
|
Money Market
(5)
|
|
Alternatives
|
||||||
December 31, 2017
|
937.6
|
|
|
431.2
|
|
|
225.8
|
|
|
57.7
|
|
|
78.7
|
|
|
144.2
|
|
Long-term inflows
|
154.6
|
|
|
74.0
|
|
|
38.6
|
|
|
10.6
|
|
|
4.9
|
|
|
26.5
|
|
Long-term outflows
|
(173.5
|
)
|
|
(95.2
|
)
|
|
(37.5
|
)
|
|
(9.9
|
)
|
|
(3.9
|
)
|
|
(27.0
|
)
|
Long-term net flows
|
(18.9
|
)
|
|
(21.2
|
)
|
|
1.1
|
|
|
0.7
|
|
|
1.0
|
|
|
(0.5
|
)
|
Net flows in non-management fee earning AUM
|
3.7
|
|
|
4.0
|
|
|
(0.3
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
Net flows in institutional money market funds
|
4.4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4.4
|
|
|
—
|
|
Total net flows
|
(10.8
|
)
|
|
(17.2
|
)
|
|
0.8
|
|
|
0.7
|
|
|
5.4
|
|
|
(0.5
|
)
|
Reinvested distributions
(2)
|
3.0
|
|
|
1.8
|
|
|
0.8
|
|
|
0.1
|
|
|
—
|
|
|
0.3
|
|
Market gains and losses
(2)
|
12.4
|
|
|
17.6
|
|
|
(3.0
|
)
|
|
(1.2
|
)
|
|
0.3
|
|
|
(1.3
|
)
|
Acquisitions
(8)
|
47.6
|
|
|
31.2
|
|
|
11.5
|
|
|
1.0
|
|
|
2.4
|
|
|
1.5
|
|
Foreign currency translation
|
(8.9
|
)
|
|
(4.0
|
)
|
|
(1.6
|
)
|
|
(1.3
|
)
|
|
(0.5
|
)
|
|
(1.5
|
)
|
September 30, 2018
|
980.9
|
|
|
460.6
|
|
|
234.3
|
|
|
57.0
|
|
|
86.3
|
|
|
142.7
|
|
Average AUM
|
970.1
|
|
|
448.9
|
|
|
232.6
|
|
|
58.6
|
|
|
84.6
|
|
|
145.4
|
|
% of total average AUM
|
100.0
|
%
|
|
46.3
|
%
|
|
24.0
|
%
|
|
6.0
|
%
|
|
8.7
|
%
|
|
15.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
December 31, 2016
|
812.9
|
|
|
364.1
|
|
|
201.7
|
|
|
46.8
|
|
|
78.3
|
|
|
122.0
|
|
Long-term inflows
|
132.5
|
|
|
57.4
|
|
|
34.3
|
|
|
9.4
|
|
|
3.1
|
|
|
28.3
|
|
Long-term outflows
|
(126.5
|
)
|
|
(70.0
|
)
|
|
(26.5
|
)
|
|
(7.3
|
)
|
|
(2.9
|
)
|
|
(19.8
|
)
|
Long-term net flows
|
6.0
|
|
|
(12.6
|
)
|
|
7.8
|
|
|
2.1
|
|
|
0.2
|
|
|
8.5
|
|
Net flows in non-management fee earning AUM
|
1.4
|
|
|
(1.2
|
)
|
|
2.6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net flows in institutional money market funds
|
0.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.1
|
|
|
—
|
|
Total net flows
|
7.5
|
|
|
(13.8
|
)
|
|
10.4
|
|
|
2.1
|
|
|
0.3
|
|
|
8.5
|
|
Reinvested distributions
(2)
|
1.1
|
|
|
0.8
|
|
|
0.2
|
|
|
0.1
|
|
|
—
|
|
|
—
|
|
Market gains and losses
(2)
|
51.1
|
|
|
44.2
|
|
|
4.6
|
|
|
2.1
|
|
|
0.1
|
|
|
0.1
|
|
Transfers
(4)
|
—
|
|
|
—
|
|
|
(3.0
|
)
|
|
—
|
|
|
3.0
|
|
|
—
|
|
Acquisitions
|
26.0
|
|
|
12.2
|
|
|
7.8
|
|
|
—
|
|
|
—
|
|
|
6.0
|
|
Foreign currency translation
|
18.9
|
|
|
8.7
|
|
|
2.8
|
|
|
3.1
|
|
|
0.2
|
|
|
4.1
|
|
September 30, 2017
|
917.5
|
|
|
416.2
|
|
|
224.5
|
|
|
54.2
|
|
|
81.9
|
|
|
140.7
|
|
Average AUM
|
856.6
|
|
|
389.6
|
|
|
208.8
|
|
|
50.9
|
|
|
77.3
|
|
|
129.9
|
|
% of total average AUM
|
100.0
|
%
|
|
45.5
|
%
|
|
24.4
|
%
|
|
5.9
|
%
|
|
9.0
|
%
|
|
15.2
|
%
|
$ in billions
|
Total
|
|
Equity
|
|
Fixed Income
|
|
Balanced
|
|
Money Market
|
|
Alternatives
|
||||||
June 30, 2018
|
241.2
|
|
|
163.3
|
|
|
63.1
|
|
|
—
|
|
|
—
|
|
|
14.8
|
|
Long-term inflows
|
15.3
|
|
|
11.1
|
|
|
3.0
|
|
|
—
|
|
|
—
|
|
|
1.2
|
|
Long-term outflows
|
(15.6
|
)
|
|
(9.8
|
)
|
|
(2.9
|
)
|
|
—
|
|
|
—
|
|
|
(2.9
|
)
|
Long-term net flows
|
(0.3
|
)
|
|
1.3
|
|
|
0.1
|
|
|
—
|
|
|
—
|
|
|
(1.7
|
)
|
Net flows in non-management fee earning AUM
|
3.2
|
|
|
2.3
|
|
|
0.9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net flows in institutional money market funds
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Total net flows
|
2.9
|
|
|
3.6
|
|
|
1.0
|
|
|
—
|
|
|
—
|
|
|
(1.7
|
)
|
Market gains and losses
|
9.6
|
|
|
10.0
|
|
|
(0.2
|
)
|
|
—
|
|
|
—
|
|
|
(0.2
|
)
|
Acquisitions
(8)
|
0.2
|
|
|
0.2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Foreign currency translation
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
September 30, 2018
|
253.9
|
|
|
177.1
|
|
|
63.9
|
|
|
—
|
|
|
—
|
|
|
12.9
|
|
Average AUM
|
248.8
|
|
|
171.4
|
|
|
64.2
|
|
|
—
|
|
|
—
|
|
|
13.2
|
|
% of total average AUM
|
100.0
|
%
|
|
68.9
|
%
|
|
25.8
|
%
|
|
—
|
%
|
|
—
|
%
|
|
5.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
June 30, 2017
|
156.6
|
|
|
103.5
|
|
|
46.5
|
|
|
—
|
|
|
—
|
|
|
6.6
|
|
Long-term inflows
|
9.9
|
|
|
5.9
|
|
|
2.8
|
|
|
—
|
|
|
—
|
|
|
1.2
|
|
Long-term outflows
|
(8.6
|
)
|
|
(6.3
|
)
|
|
(1.7
|
)
|
|
—
|
|
|
—
|
|
|
(0.6
|
)
|
Long-term net flows
|
1.3
|
|
|
(0.4
|
)
|
|
1.1
|
|
|
—
|
|
|
—
|
|
|
0.6
|
|
Net flows in non-management fee earning AUM
|
0.9
|
|
|
(1.0
|
)
|
|
1.9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net flows in institutional money market funds
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Total net flows
|
2.2
|
|
|
(1.4
|
)
|
|
3.0
|
|
|
—
|
|
|
—
|
|
|
0.6
|
|
Market gains and losses
|
5.7
|
|
|
5.5
|
|
|
0.1
|
|
|
—
|
|
|
—
|
|
|
0.1
|
|
Acquisitions
|
26.0
|
|
|
12.2
|
|
|
7.8
|
|
|
—
|
|
|
—
|
|
|
6.0
|
|
September 30, 2017
|
190.5
|
|
|
119.8
|
|
|
57.4
|
|
|
—
|
|
|
—
|
|
|
13.3
|
|
Average AUM
|
173.8
|
|
|
112.2
|
|
|
51.9
|
|
|
—
|
|
|
—
|
|
|
9.7
|
|
% of total average AUM
|
100.0
|
%
|
|
64.6
|
%
|
|
29.9
|
%
|
|
—
|
%
|
|
—
|
%
|
|
5.6
|
%
|
$ in billions
|
Total
|
|
Equity
|
|
Fixed Income
|
|
Balanced
|
|
Money Market
|
|
Alternatives
|
||||||
December 31, 2017
|
199.0
|
|
|
128.4
|
|
|
57.3
|
|
|
—
|
|
|
—
|
|
|
13.3
|
|
Long-term inflows
|
50.6
|
|
|
33.9
|
|
|
10.2
|
|
|
—
|
|
|
—
|
|
|
6.5
|
|
Long-term outflows
|
(48.7
|
)
|
|
(32.2
|
)
|
|
(10.0
|
)
|
|
—
|
|
|
—
|
|
|
(6.5
|
)
|
Long-term net flows
|
1.9
|
|
|
1.7
|
|
|
0.2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net flows in non-management fee earning AUM
|
3.7
|
|
|
4.0
|
|
|
(0.3
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
Net flows in institutional money market funds
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Total net flows
|
5.6
|
|
|
5.7
|
|
|
(0.1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
Market gains and losses
|
14.0
|
|
|
16.1
|
|
|
(1.5
|
)
|
|
—
|
|
|
—
|
|
|
(0.6
|
)
|
Transfers
(7)
|
(1.5
|
)
|
|
—
|
|
|
(0.3
|
)
|
|
—
|
|
|
—
|
|
|
(1.2
|
)
|
Acquisitions
(8)
|
37.1
|
|
|
27.1
|
|
|
8.7
|
|
|
—
|
|
|
—
|
|
|
1.3
|
|
Foreign currency translation
|
(0.3
|
)
|
|
(0.2
|
)
|
|
(0.2
|
)
|
|
—
|
|
|
—
|
|
|
0.1
|
|
September 30, 2018
|
253.9
|
|
|
177.1
|
|
|
63.9
|
|
|
—
|
|
|
—
|
|
|
12.9
|
|
Average AUM
|
230.7
|
|
|
154.6
|
|
|
61.6
|
|
|
—
|
|
|
—
|
|
|
14.5
|
|
% of total average AUM
|
100.0
|
%
|
|
67.0
|
%
|
|
26.7
|
%
|
|
—
|
%
|
|
—
|
%
|
|
6.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
December 31, 2016
|
144.4
|
|
|
93.5
|
|
|
41.7
|
|
|
—
|
|
|
—
|
|
|
9.2
|
|
Long-term inflows
|
26.4
|
|
|
16.2
|
|
|
7.9
|
|
|
—
|
|
|
—
|
|
|
2.3
|
|
Long-term outflows
|
(22.5
|
)
|
|
(15.8
|
)
|
|
(3.0
|
)
|
|
—
|
|
|
—
|
|
|
(3.7
|
)
|
Long-term net flows
|
3.9
|
|
|
0.4
|
|
|
4.9
|
|
|
—
|
|
|
—
|
|
|
(1.4
|
)
|
Net flows in non-management fee earning AUM
|
1.4
|
|
|
(1.2
|
)
|
|
2.6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net flows in institutional money market funds
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Total net flows
|
5.3
|
|
|
(0.8
|
)
|
|
7.5
|
|
|
—
|
|
|
—
|
|
|
(1.4
|
)
|
Market gains and losses
|
14.7
|
|
|
14.9
|
|
|
0.4
|
|
|
—
|
|
|
—
|
|
|
(0.6
|
)
|
Acquisitions
|
26.0
|
|
|
12.2
|
|
|
7.8
|
|
|
—
|
|
|
—
|
|
|
6.0
|
|
Foreign currency translation
|
0.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.1
|
|
September 30, 2017
|
190.5
|
|
|
119.8
|
|
|
57.4
|
|
|
—
|
|
|
—
|
|
|
13.3
|
|
Average AUM
|
160.7
|
|
|
104.5
|
|
|
47.5
|
|
|
—
|
|
|
—
|
|
|
8.6
|
|
% of total average AUM
|
100.0
|
%
|
|
65.0
|
%
|
|
29.6
|
%
|
|
—
|
%
|
|
—
|
%
|
|
5.4
|
%
|
$ in billions
|
Total
|
|
U.S.
|
|
Canada
|
|
U.K.
|
|
Continental Europe
|
|
Asia
|
||||||
June 30, 2018
|
963.3
|
|
|
622.1
|
|
|
25.4
|
|
|
100.9
|
|
|
126.3
|
|
|
88.6
|
|
Long-term inflows
|
43.6
|
|
|
22.9
|
|
|
0.9
|
|
|
2.7
|
|
|
10.9
|
|
|
6.2
|
|
Long-term outflows
|
(54.8
|
)
|
|
(28.8
|
)
|
|
(1.2
|
)
|
|
(6.4
|
)
|
|
(12.6
|
)
|
|
(5.8
|
)
|
Long-term net flows
|
(11.2
|
)
|
|
(5.9
|
)
|
|
(0.3
|
)
|
|
(3.7
|
)
|
|
(1.7
|
)
|
|
0.4
|
|
Net flows in non-management fee earning AUM
|
3.2
|
|
|
3.2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net flows in institutional money market funds
|
3.1
|
|
|
(2.1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5.2
|
|
Total net flows
|
(4.9
|
)
|
|
(4.8
|
)
|
|
(0.3
|
)
|
|
(3.7
|
)
|
|
(1.7
|
)
|
|
5.6
|
|
Reinvested distributions
(2)
|
1.7
|
|
|
1.6
|
|
|
—
|
|
|
0.1
|
|
|
—
|
|
|
—
|
|
Market gains and losses
(2)
|
14.3
|
|
|
14.1
|
|
|
—
|
|
|
(0.2
|
)
|
|
0.8
|
|
|
(0.4
|
)
|
Acquisitions
(8)
|
9.5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9.5
|
|
Foreign currency translation
|
(3.0
|
)
|
|
—
|
|
|
0.5
|
|
|
(1.0
|
)
|
|
(0.6
|
)
|
|
(1.9
|
)
|
September 30, 2018
|
980.9
|
|
|
633.0
|
|
|
25.6
|
|
|
96.1
|
|
|
124.8
|
|
|
101.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
June 30, 2017
|
858.3
|
|
|
559.2
|
|
|
24.8
|
|
|
103.8
|
|
|
86.6
|
|
|
83.9
|
|
Long-term inflows
|
45.0
|
|
|
20.6
|
|
|
1.0
|
|
|
4.3
|
|
|
13.8
|
|
|
5.3
|
|
Long-term outflows
|
(40.9
|
)
|
|
(20.9
|
)
|
|
(1.1
|
)
|
|
(3.2
|
)
|
|
(10.5
|
)
|
|
(5.2
|
)
|
Long-term net flows
|
4.1
|
|
|
(0.3
|
)
|
|
(0.1
|
)
|
|
1.1
|
|
|
3.3
|
|
|
0.1
|
|
Net flows in non-management fee earning AUM
|
0.9
|
|
|
0.9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net flows in institutional money market funds
|
5.4
|
|
|
4.9
|
|
|
—
|
|
|
0.3
|
|
|
0.2
|
|
|
—
|
|
Total net flows
|
10.4
|
|
|
5.5
|
|
|
(0.1
|
)
|
|
1.4
|
|
|
3.5
|
|
|
0.1
|
|
Reinvested distributions
(2)
|
1.1
|
|
|
1.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Market gains and losses
(2)
|
15.0
|
|
|
12.2
|
|
|
0.1
|
|
|
(0.2
|
)
|
|
2.3
|
|
|
0.6
|
|
Acquisitions
|
26.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
26.0
|
|
|
—
|
|
Foreign currency translation
|
6.7
|
|
|
—
|
|
|
1.0
|
|
|
3.0
|
|
|
2.3
|
|
|
0.4
|
|
September 30, 2017
|
917.5
|
|
|
578.0
|
|
|
25.8
|
|
|
108.0
|
|
|
120.7
|
|
|
85.0
|
|
$ in billions
|
Total
|
|
U.S.
|
|
Canada
|
|
U.K.
|
|
Continental Europe
|
|
Asia
|
||||||
December 31, 2017
|
937.6
|
|
|
585.4
|
|
|
26.8
|
|
|
110.9
|
|
|
127.1
|
|
|
87.4
|
|
Long-term inflows
|
154.6
|
|
|
72.9
|
|
|
3.5
|
|
|
10.1
|
|
|
46.1
|
|
|
22.0
|
|
Long-term outflows
|
(173.5
|
)
|
|
(87.9
|
)
|
|
(4.0
|
)
|
|
(18.0
|
)
|
|
(44.6
|
)
|
|
(19.0
|
)
|
Long-term net flows
|
(18.9
|
)
|
|
(15.0
|
)
|
|
(0.5
|
)
|
|
(7.9
|
)
|
|
1.5
|
|
|
3.0
|
|
Net flows in non-management fee earning AUM
|
3.7
|
|
|
3.7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net flows in institutional money market funds
|
4.4
|
|
|
0.8
|
|
|
—
|
|
|
(2.3
|
)
|
|
(0.3
|
)
|
|
6.2
|
|
Total net flows
|
(10.8
|
)
|
|
(10.5
|
)
|
|
(0.5
|
)
|
|
(10.2
|
)
|
|
1.2
|
|
|
9.2
|
|
Reinvested distributions
(2)
|
3.0
|
|
|
2.6
|
|
|
—
|
|
|
0.4
|
|
|
—
|
|
|
—
|
|
Market gains and losses
(2)
|
12.4
|
|
|
17.4
|
|
|
0.1
|
|
|
(2.0
|
)
|
|
(0.6
|
)
|
|
(2.5
|
)
|
Acquisitions
(8)
|
47.6
|
|
|
38.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9.5
|
|
Foreign currency translation
|
(8.9
|
)
|
|
—
|
|
|
(0.8
|
)
|
|
(3.0
|
)
|
|
(2.9
|
)
|
|
(2.2
|
)
|
September 30, 2018
|
980.9
|
|
|
633.0
|
|
|
25.6
|
|
|
96.1
|
|
|
124.8
|
|
|
101.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
December 31, 2016
|
812.9
|
|
|
539.5
|
|
|
23.1
|
|
|
98.2
|
|
|
72.1
|
|
|
80.0
|
|
Long-term inflows
|
132.5
|
|
|
67.0
|
|
|
3.2
|
|
|
12.4
|
|
|
31.9
|
|
|
18.0
|
|
Long-term outflows
|
(126.5
|
)
|
|
(68.5
|
)
|
|
(3.4
|
)
|
|
(14.2
|
)
|
|
(22.9
|
)
|
|
(17.5
|
)
|
Long-term net flows
|
6.0
|
|
|
(1.5
|
)
|
|
(0.2
|
)
|
|
(1.8
|
)
|
|
9.0
|
|
|
0.5
|
|
Net flows in non-management fee earning AUM
|
1.4
|
|
|
1.4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net flows in institutional money market funds
|
0.1
|
|
|
1.3
|
|
|
—
|
|
|
(1.2
|
)
|
|
0.7
|
|
|
(0.7
|
)
|
Total net flows
|
7.5
|
|
|
1.2
|
|
|
(0.2
|
)
|
|
(3.0
|
)
|
|
9.7
|
|
|
(0.2
|
)
|
Reinvested distributions
(2)
|
1.1
|
|
|
1.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Market gains and losses
(2)
|
51.1
|
|
|
36.1
|
|
|
1.1
|
|
|
5.3
|
|
|
6.1
|
|
|
2.5
|
|
Acquisitions
|
26.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
26.0
|
|
|
—
|
|
Foreign currency translation
|
18.9
|
|
|
0.1
|
|
|
1.8
|
|
|
7.5
|
|
|
6.8
|
|
|
2.7
|
|
September 30, 2017
|
917.5
|
|
|
578.0
|
|
|
25.8
|
|
|
108.0
|
|
|
120.7
|
|
|
85.0
|
|
$ in billions
|
Total
|
|
U.S.
|
|
Canada
|
|
U.K.
|
|
Continental Europe
|
|
Asia
|
||||||
June 30, 2018
|
241.2
|
|
|
209.4
|
|
|
0.5
|
|
|
—
|
|
|
30.6
|
|
|
0.7
|
|
Long-term inflows
|
15.3
|
|
|
9.5
|
|
|
0.1
|
|
|
—
|
|
|
5.6
|
|
|
0.1
|
|
Long-term outflows
|
(15.6
|
)
|
|
(9.2
|
)
|
|
—
|
|
|
—
|
|
|
(6.3
|
)
|
|
(0.1
|
)
|
Long-term net flows
|
(0.3
|
)
|
|
0.3
|
|
|
0.1
|
|
|
—
|
|
|
(0.7
|
)
|
|
—
|
|
Net flows in non-management fee earning AUM
|
3.2
|
|
|
3.2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net flows in institutional money market funds
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Total net flows
|
2.9
|
|
|
3.5
|
|
|
0.1
|
|
|
—
|
|
|
(0.7
|
)
|
|
—
|
|
Market gains and losses
|
9.6
|
|
|
9.1
|
|
|
—
|
|
|
—
|
|
|
0.5
|
|
|
—
|
|
Transfers
|
—
|
|
|
(0.5
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.5
|
|
Acquisitions
(8)
|
0.2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.2
|
|
Foreign currency translation
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
September 30, 2018
|
253.9
|
|
|
221.5
|
|
|
0.6
|
|
|
—
|
|
|
30.4
|
|
|
1.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
June 30, 2017
|
156.6
|
|
|
152.8
|
|
|
0.6
|
|
|
—
|
|
|
2.1
|
|
|
1.1
|
|
Long-term inflows
|
9.9
|
|
|
6.1
|
|
|
0.1
|
|
|
—
|
|
|
3.7
|
|
|
—
|
|
Long-term outflows
|
(8.6
|
)
|
|
(5.1
|
)
|
|
(0.1
|
)
|
|
—
|
|
|
(3.4
|
)
|
|
—
|
|
Long-term net flows
|
1.3
|
|
|
1.0
|
|
|
—
|
|
|
—
|
|
|
0.3
|
|
|
—
|
|
Net flows in non-management fee earning AUM
|
0.9
|
|
|
0.9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net flows in institutional money market funds
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Total net flows
|
2.2
|
|
|
1.9
|
|
|
—
|
|
|
—
|
|
|
0.3
|
|
|
—
|
|
Market gains and losses
|
5.7
|
|
|
5.1
|
|
|
—
|
|
|
—
|
|
|
0.6
|
|
|
—
|
|
Acquisitions
|
26.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
26.0
|
|
|
—
|
|
Foreign currency translation
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
September 30, 2017
|
190.5
|
|
|
159.8
|
|
|
0.6
|
|
|
—
|
|
|
29.0
|
|
|
1.1
|
|
$ in billions
|
Total
|
|
U.S.
|
|
Canada
|
|
U.K.
|
|
Continental Europe
|
|
Asia
|
||||||
December 31, 2017
|
199.0
|
|
|
167.3
|
|
|
0.6
|
|
|
—
|
|
|
30.0
|
|
|
1.1
|
|
Long-term inflows
|
50.6
|
|
|
30.2
|
|
|
0.1
|
|
|
—
|
|
|
20.0
|
|
|
0.3
|
|
Long-term outflows
|
(48.7
|
)
|
|
(28.9
|
)
|
|
(0.1
|
)
|
|
—
|
|
|
(19.5
|
)
|
|
(0.2
|
)
|
Long-term net flows
|
1.9
|
|
|
1.3
|
|
|
—
|
|
|
—
|
|
|
0.5
|
|
|
0.1
|
|
Net flows in non-management fee earning AUM
|
3.7
|
|
|
3.7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net flows in institutional money market funds
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Total net flows
|
5.6
|
|
|
5.0
|
|
|
—
|
|
|
—
|
|
|
0.5
|
|
|
0.1
|
|
Market gains and losses
|
14.0
|
|
|
14.3
|
|
|
—
|
|
|
—
|
|
|
0.2
|
|
|
(0.5
|
)
|
Transfers
(7)
|
(1.5
|
)
|
|
(2.0
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.5
|
|
Acquisitions
(8)
|
37.1
|
|
|
36.9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.2
|
|
Foreign currency translation
|
(0.3
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.3
|
)
|
|
—
|
|
September 30, 2018
|
253.9
|
|
|
221.5
|
|
|
0.6
|
|
|
—
|
|
|
30.4
|
|
|
1.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
December 31, 2016
|
144.4
|
|
|
139.9
|
|
|
0.5
|
|
|
—
|
|
|
1.9
|
|
|
2.1
|
|
Long-term inflows
|
26.4
|
|
|
22.1
|
|
|
0.2
|
|
|
—
|
|
|
4.1
|
|
|
—
|
|
Long-term outflows
|
(22.5
|
)
|
|
(17.4
|
)
|
|
(0.1
|
)
|
|
—
|
|
|
(3.8
|
)
|
|
(1.2
|
)
|
Long-term net flows
|
3.9
|
|
|
4.7
|
|
|
0.1
|
|
|
—
|
|
|
0.3
|
|
|
(1.2
|
)
|
Net flows in non-management fee earning AUM
|
1.4
|
|
|
1.4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net flows in institutional money market funds
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Total net flows
|
5.3
|
|
|
6.1
|
|
|
0.1
|
|
|
—
|
|
|
0.3
|
|
|
(1.2
|
)
|
Market gains and losses
|
14.7
|
|
|
13.8
|
|
|
—
|
|
|
—
|
|
|
0.8
|
|
|
0.1
|
|
Acquisitions
|
26.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
26.0
|
|
|
—
|
|
Foreign currency translation
|
0.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.1
|
|
September 30, 2017
|
190.5
|
|
|
159.8
|
|
|
0.6
|
|
|
—
|
|
|
29.0
|
|
|
1.1
|
|
(1)
|
Channel refers to the internal distribution channel from which the AUM originated. Retail AUM represents AUM distributed by the company's retail sales team. Institutional AUM represents AUM distributed by our institutional sales team. This aggregation is viewed as a proxy for presenting AUM in the retail and institutional markets in which the company operates.
|
(2)
|
In 2018 reinvested distributions are shown in a separate line in the AUM tables. For periods prior to the third quarter of 2017, reinvested distributions are included in market gains and losses.
|
(3)
|
Asset classes are descriptive groupings of AUM by common type of underlying investments.
|
(4)
|
During January 2017, the company reclassified certain AUM previously classified in fixed income to money market totaling $3.0 billion.
|
(6)
|
Client domicile disclosure groups AUM by the domicile of the underlying clients.
|
(7)
|
During the second quarter of 2018, $1.5 billion of passive ETF AUM were reclassified to active AUM. During the first quarter of 2018, $29.5 billion of AUM were transferred from retail into institutional to better reflect the activities of institutional sales teams and the clients they support.
|
(8)
|
The acquisition of Guggenheim Investments' ETF business on April 6, 2018 added $38.1 billion in AUM during the second quarter.
As of July 1, 2018, we began including 100% of Invesco Great Wall Fund Management Company, which added $9.5 billion in AUM during the third quarter
.
|
|
|
|
|
|
Variance
|
|
|
|
|
|
Variance
|
||||||||||||
|
Three months ended September 30,
|
|
2018 vs 2017
|
|
Nine months ended September 30,
|
|
2018 vs 2017
|
||||||||||||||||
$ in millions
|
2018
|
|
2017
|
|
$ Change
|
|
% Change
|
|
2018
|
|
2017
|
|
$ Change
|
|
% Change
|
||||||||
Investment management fees
|
1,038.9
|
|
|
1,062.3
|
|
|
(23.4
|
)
|
|
(2.2
|
)%
|
|
3,133.1
|
|
|
3,027.9
|
|
|
105.2
|
|
|
3.5
|
%
|
Service and distribution fees
|
248.0
|
|
|
217.6
|
|
|
30.4
|
|
|
14.0
|
%
|
|
737.0
|
|
|
635.3
|
|
|
101.7
|
|
|
16.0
|
%
|
Performance fees
|
7.9
|
|
|
42.3
|
|
|
(34.4
|
)
|
|
(81.3
|
)%
|
|
28.6
|
|
|
70.3
|
|
|
(41.7
|
)
|
|
(59.3
|
)%
|
Other
|
47.0
|
|
|
15.5
|
|
|
31.5
|
|
|
203.2
|
%
|
|
159.5
|
|
|
51.2
|
|
|
108.3
|
|
|
211.5
|
%
|
Total operating revenues
|
1,341.8
|
|
|
1,337.7
|
|
|
4.1
|
|
|
0.3
|
%
|
|
4,058.2
|
|
|
3,784.7
|
|
|
273.5
|
|
|
7.2
|
%
|
Third-party distribution, service and advisory expenses
|
(408.0
|
)
|
|
(380.4
|
)
|
|
(27.6
|
)
|
|
7.3
|
%
|
|
(1,236.0
|
)
|
|
(1,095.6
|
)
|
|
(140.4
|
)
|
|
12.8
|
%
|
Invesco Great Wall
|
28.4
|
|
|
13.1
|
|
|
15.3
|
|
|
116.8
|
%
|
|
57.8
|
|
|
35.2
|
|
|
22.6
|
|
|
64.2
|
%
|
CIP
|
4.7
|
|
|
6.2
|
|
|
(1.5
|
)
|
|
(24.2
|
)%
|
|
18.8
|
|
|
25.7
|
|
|
(6.9
|
)
|
|
(26.8
|
)%
|
Net revenues
|
966.9
|
|
|
976.6
|
|
|
(9.7
|
)
|
|
(1.0
|
)%
|
|
2,898.8
|
|
|
2,750.0
|
|
|
148.8
|
|
|
5.4
|
%
|
|
|
|
|
|
Variance
|
|
|
|
|
|
Variance
|
||||||||||||
|
Three months ended September 30,
|
|
2018 vs 2017
|
|
Nine months ended September 30,
|
|
2018 vs 2017
|
||||||||||||||||
$ in millions
|
2018
|
|
2017
|
|
$ Change
|
|
% Change
|
|
2018
|
|
2017
|
|
$ Change
|
|
% Change
|
||||||||
Third-party distribution, service and advisory
|
408.0
|
|
|
380.4
|
|
|
27.6
|
|
|
7.3
|
%
|
|
1,236.0
|
|
|
1,095.6
|
|
|
140.4
|
|
|
12.8
|
%
|
Employee compensation
|
385.5
|
|
|
388.1
|
|
|
(2.6
|
)
|
|
(0.7
|
)%
|
|
1,157.0
|
|
|
1,151.8
|
|
|
5.2
|
|
|
0.5
|
%
|
Marketing
|
34.0
|
|
|
29.5
|
|
|
4.5
|
|
|
15.3
|
%
|
|
94.9
|
|
|
83.0
|
|
|
11.9
|
|
|
14.3
|
%
|
Property, office and technology
|
104.8
|
|
|
92.8
|
|
|
12.0
|
|
|
12.9
|
%
|
|
308.7
|
|
|
267.3
|
|
|
41.4
|
|
|
15.5
|
%
|
General and administrative
|
87.4
|
|
|
86.6
|
|
|
0.8
|
|
|
0.9
|
%
|
|
287.1
|
|
|
250.5
|
|
|
36.6
|
|
|
14.6
|
%
|
Total operating expenses
|
1,019.7
|
|
|
977.4
|
|
|
42.3
|
|
|
4.3
|
%
|
|
3,083.7
|
|
|
2,848.2
|
|
|
235.5
|
|
|
8.3
|
%
|
$ in millions
|
Three months ended September 30, 2018
|
|
% of Total Operating Expenses
|
|
% of Operating Revenues
|
|
Three months ended September 30, 2017
|
|
% of Total Operating Expenses
|
|
% of Operating Revenues
|
||||||
Third-party distribution, service and advisory
|
408.0
|
|
|
40.0
|
%
|
|
30.4
|
%
|
|
380.4
|
|
|
38.9
|
%
|
|
28.4
|
%
|
Employee compensation
|
385.5
|
|
|
37.8
|
%
|
|
28.7
|
%
|
|
388.1
|
|
|
39.7
|
%
|
|
29.0
|
%
|
Marketing
|
34.0
|
|
|
3.3
|
%
|
|
2.5
|
%
|
|
29.5
|
|
|
3.0
|
%
|
|
2.2
|
%
|
Property, office and technology
|
104.8
|
|
|
10.3
|
%
|
|
7.8
|
%
|
|
92.8
|
|
|
9.5
|
%
|
|
6.9
|
%
|
General and administrative
|
87.4
|
|
|
8.6
|
%
|
|
6.5
|
%
|
|
86.6
|
|
|
8.9
|
%
|
|
6.5
|
%
|
Total operating expenses
|
1,019.7
|
|
|
100.0
|
%
|
|
76.0
|
%
|
|
977.4
|
|
|
100.0
|
%
|
|
73.1
|
%
|
$ in millions
|
Nine months ended September 30, 2018
|
|
% of Total Operating Expenses
|
|
% of Operating Revenues
|
|
Nine months ended September 30, 2017
|
|
% of Total Operating Expenses
|
|
% of Operating Revenues
|
||||||
Third-party distribution, service and advisory
|
1,236.0
|
|
|
40.1
|
%
|
|
30.5
|
%
|
|
1,095.6
|
|
|
38.5
|
%
|
|
28.9
|
%
|
Employee compensation
|
1,157.0
|
|
|
37.5
|
%
|
|
28.5
|
%
|
|
1,151.8
|
|
|
40.4
|
%
|
|
30.4
|
%
|
Marketing
|
94.9
|
|
|
3.1
|
%
|
|
2.3
|
%
|
|
83.0
|
|
|
2.9
|
%
|
|
2.2
|
%
|
Property, office and technology
|
308.7
|
|
|
10.0
|
%
|
|
7.6
|
%
|
|
267.3
|
|
|
9.4
|
%
|
|
7.1
|
%
|
General and administrative
|
287.1
|
|
|
9.3
|
%
|
|
7.1
|
%
|
|
250.5
|
|
|
8.8
|
%
|
|
6.6
|
%
|
Total operating expenses
|
3,083.7
|
|
|
100.0
|
%
|
|
76.0
|
%
|
|
2,848.2
|
|
|
100.0
|
%
|
|
75.3
|
%
|
|
|
|
|
|
Variance
|
|
|
|
|
|
Variance
|
||||||||||||
|
Three months ended September 30,
|
|
2018 vs 2017
|
|
Nine months ended September 30,
|
|
2018 vs 2017
|
||||||||||||||||
$ in millions
|
2018
|
|
2017
|
|
$ Change
|
|
% Change
|
|
2018
|
|
2017
|
|
$ Change
|
|
% Change
|
||||||||
Equity in earnings of unconsolidated affiliates
|
11.8
|
|
|
12.9
|
|
|
(1.1
|
)
|
|
(8.5
|
)%
|
|
28.8
|
|
|
41.1
|
|
|
(12.3
|
)
|
|
(29.9
|
)%
|
Interest and dividend income
|
4.0
|
|
|
2.5
|
|
|
1.5
|
|
|
60.0
|
%
|
|
11.0
|
|
|
7.0
|
|
|
4.0
|
|
|
57.1
|
%
|
Interest expense
|
(29.6
|
)
|
|
(23.6
|
)
|
|
(6.0
|
)
|
|
25.4
|
%
|
|
(82.3
|
)
|
|
(71.2
|
)
|
|
(11.1
|
)
|
|
15.6
|
%
|
Other gains and losses, net
|
5.9
|
|
|
13.9
|
|
|
(8.0
|
)
|
|
(57.6
|
)%
|
|
1.9
|
|
|
23.9
|
|
|
(22.0
|
)
|
|
(92.1
|
)%
|
Other income/(expense) of CIP, net
|
28.1
|
|
|
31.7
|
|
|
(3.6
|
)
|
|
(11.4
|
)%
|
|
56.2
|
|
|
92.5
|
|
|
(36.3
|
)
|
|
(39.2
|
)%
|
Total other income and expenses
|
20.2
|
|
|
37.4
|
|
|
(17.2
|
)
|
|
(46.0
|
)%
|
|
15.6
|
|
|
93.3
|
|
|
(77.7
|
)
|
|
(83.3
|
)%
|
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
||||||||
$ in millions
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||
Operating revenues, U.S. GAAP basis
|
1,341.8
|
|
|
1,337.7
|
|
|
4,058.2
|
|
|
3,784.7
|
|
Invesco Great Wall
(1)
|
28.4
|
|
|
13.1
|
|
|
57.8
|
|
|
35.2
|
|
Third party distribution, service and advisory expenses
(2)
|
(408.0
|
)
|
|
(380.4
|
)
|
|
(1,236.0
|
)
|
|
(1,095.6
|
)
|
CIP
(3)
|
4.7
|
|
|
6.2
|
|
|
18.8
|
|
|
25.7
|
|
Net revenues
|
966.9
|
|
|
976.6
|
|
|
2,898.8
|
|
|
2,750.0
|
|
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
||||||||
$ in millions
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||
Operating income, U.S. GAAP basis
|
322.1
|
|
|
360.3
|
|
|
974.5
|
|
|
936.5
|
|
Invesco Great Wall
(1)
|
11.7
|
|
|
5.8
|
|
|
23.3
|
|
|
12.4
|
|
CIP
(3)
|
9.8
|
|
|
10.4
|
|
|
33.3
|
|
|
30.9
|
|
Business combinations
(4)
|
18.6
|
|
|
8.6
|
|
|
46.4
|
|
|
22.1
|
|
Compensation expense related to market valuation changes in deferred compensation plans
(5)
|
3.9
|
|
|
5.0
|
|
|
8.2
|
|
|
14.1
|
|
Other reconciling items
(6)
|
(8.3
|
)
|
|
12.3
|
|
|
5.9
|
|
|
68.7
|
|
Adjusted operating income
|
357.8
|
|
|
402.4
|
|
|
1,091.6
|
|
|
1,084.7
|
|
|
|
|
|
|
|
|
|
||||
Operating margin*
|
24.0
|
%
|
|
26.9
|
%
|
|
24.0
|
%
|
|
24.7
|
%
|
Adjusted operating margin**
|
37.0
|
%
|
|
41.2
|
%
|
|
37.7
|
%
|
|
39.4
|
%
|
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
||||||||||||
$ in millions, except per share data
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Net income attributable to Invesco Ltd., U.S. GAAP basis
|
269.6
|
|
|
267.5
|
|
|
768.6
|
|
|
719.1
|
|
||||
CIP
(3)
|
(11.3
|
)
|
|
1.3
|
|
|
(9.7
|
)
|
|
(1.5
|
)
|
||||
Business combinations, net of tax
(4)
|
24.0
|
|
|
2.7
|
|
|
57.3
|
|
|
22.3
|
|
||||
Deferred compensation plan market valuation changes and dividend income less compensation expense, net of tax
(5)
|
0.7
|
|
|
(0.7
|
)
|
|
5.7
|
|
|
(4.7
|
)
|
||||
Other reconciling items, net of tax
(6)
|
(8.6
|
)
|
|
21.0
|
|
|
(0.5
|
)
|
|
71.6
|
|
||||
Adjusted net income attributable to Invesco Ltd.
|
274.4
|
|
|
291.8
|
|
|
821.4
|
|
|
806.8
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Average shares outstanding - diluted
|
414.4
|
|
|
410.5
|
|
|
413.4
|
|
|
409.6
|
|
||||
Diluted EPS
|
|
$0.65
|
|
|
|
$0.65
|
|
|
|
$1.86
|
|
|
|
$1.76
|
|
Adjusted diluted EPS***
|
|
$0.66
|
|
|
|
$0.71
|
|
|
|
$1.99
|
|
|
|
$1.97
|
|
*
|
Operating margin is equal to operating income divided by operating revenues.
|
**
|
Adjusted operating margin is equal to adjusted operating income divided by net revenues.
|
***
|
Adjusted diluted EPS is equal to adjusted net income attributable to Invesco Ltd. divided by the weighted average number of common and restricted shares outstanding. There is no difference between the calculated earnings per share amounts presented above and the calculated earnings per share amounts under the two class method.
|
(1)
|
Invesco Great Wall
|
(2)
|
Third-party distribution, service and advisory expenses
|
(3)
|
CIP
|
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
||||||||
$ in millions, except per share data
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||
Management fees earned from CIP, eliminated upon consolidation
|
4.7
|
|
|
6.2
|
|
|
18.8
|
|
|
18.9
|
|
Performance fees earned from CIP, eliminated upon consolidation
|
—
|
|
|
—
|
|
|
—
|
|
|
6.8
|
|
CIP related adjustments in arriving at net revenues
|
4.7
|
|
|
6.2
|
|
|
18.8
|
|
|
25.7
|
|
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
||||||||
$ in millions
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||
Business combinations:
|
|
|
|
|
|
|
|
||||
Intangible amortization expense
(a)
|
11.7
|
|
|
4.0
|
|
|
21.2
|
|
|
10.8
|
|
Employee compensation expense
(b)
|
0.9
|
|
|
1.7
|
|
|
2.7
|
|
|
4.4
|
|
Transaction and integration expense
(c)
|
6.0
|
|
|
2.9
|
|
|
22.5
|
|
|
6.9
|
|
Adjustments to operating income
|
18.6
|
|
|
8.6
|
|
|
46.4
|
|
|
22.1
|
|
Changes in contingent consideration estimates
(d)
|
(0.4
|
)
|
|
1.6
|
|
|
(0.6
|
)
|
|
(0.1
|
)
|
Foreign exchange gain related to business acquisitions
(e)
|
—
|
|
|
(12.1
|
)
|
|
—
|
|
|
(12.1
|
)
|
Taxation:
|
|
|
|
|
|
|
|
||||
Taxation on amortization
(a)
|
(0.5
|
)
|
|
(0.4
|
)
|
|
(1.5
|
)
|
|
(1.2
|
)
|
Taxation on employee compensation expense
(b)
|
(0.2
|
)
|
|
(0.6
|
)
|
|
(0.6
|
)
|
|
(1.7
|
)
|
Deferred taxation
(f)
|
7.7
|
|
|
4.9
|
|
|
18.5
|
|
|
14.7
|
|
Taxation on transaction and integration
(c)
|
(1.3
|
)
|
|
(1.0
|
)
|
|
(5.0
|
)
|
|
(1.8
|
)
|
Taxation on changes in contingent consideration estimates
(d)
|
0.1
|
|
|
(0.6
|
)
|
|
0.1
|
|
|
0.1
|
|
Taxation on foreign exchange gain related to business acquisitions
|
—
|
|
|
2.3
|
|
|
—
|
|
|
2.3
|
|
Adjustments to net income attributable to Invesco Ltd.
|
24.0
|
|
|
2.7
|
|
|
57.3
|
|
|
22.3
|
|
(a)
|
Intangible amortization expense is associated with intangible assets that are identified from acquisition of a business and are amortized on a straight-line basis over useful lives.
|
(b)
|
Employee compensation expenses are related to previous acquisitions.
|
(c)
|
Transaction and integration expenses reflect the legal, regulatory, advisory, valuation, integration-related employee incentive awards, other professional or consulting fees and general and administrative costs, which includes travel costs related to transactions and the costs of temporary staff involved in executing the transaction, and the post-closing costs of integrating the acquired business into the company’s existing operations, including incremental costs associated with achieving synergy savings.
|
(d)
|
During 2015, the company acquired investment management contracts from Deutsche Bank and the purchase price was solely comprised of contingent consideration payable in future periods. Adjustment represents the change in the fair value of contingent consideration liability.
|
(e)
|
Other gains and losses for 2017 includes a realized gain of
$12.1 million
related to revaluation of Euros held in the U.K. in anticipation of payment for the European ETF business acquisition.
|
(f)
|
While finite-lived intangible assets are amortized under U.S. GAAP, there is no amortization charge on goodwill and indefinite-lived intangibles. In certain qualifying situations, these can be amortized for tax purposes, generally over a 15-year period, as is the case in the U.S. These deferred tax liabilities represent tax benefits that are not included in the Consolidated Statements of Income absent an impairment charge or the disposal of the related business. The company receives these tax benefits but does not anticipate a sale or impairment of these assets in the foreseeable future, and therefore the deferred tax liabilities recognized under U.S. GAAP are not expected to be used either through a credit in the Consolidated Statements of Income or through settlement of tax obligations.
|
(5)
|
Market movement on deferred compensation plan liabilities
|
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
||||||||
$ in millions
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||
Market movement on deferred compensation plan liabilities:
|
|
|
|
|
|
|
|
||||
Compensation expense related to market valuation changes in deferred compensation liability
|
3.9
|
|
|
5.0
|
|
|
8.2
|
|
|
14.1
|
|
Adjustments to operating income
|
3.9
|
|
|
5.0
|
|
|
8.2
|
|
|
14.1
|
|
Market valuation changes and dividend income from investments and instruments held related to deferred compensation plans in other income/(expense)
|
(3.0
|
)
|
|
(6.3
|
)
|
|
(0.8
|
)
|
|
(21.6
|
)
|
Taxation:
|
|
|
|
|
|
|
|
||||
Taxation on deferred compensation plan market valuation changes and dividend income less compensation expense
|
(0.2
|
)
|
|
0.6
|
|
|
(1.7
|
)
|
|
2.8
|
|
Adjustments to net income attributable to Invesco Ltd.
|
0.7
|
|
|
(0.7
|
)
|
|
5.7
|
|
|
(4.7
|
)
|
(6)
|
Other reconciling items
|
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
||||||||
$ in millions
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||
Other non-GAAP adjustments:
|
|
|
|
|
|
|
|
||||
Business optimization charges:
(a)
|
|
|
|
|
|
|
|
||||
Employee compensation
|
3.5
|
|
|
7.6
|
|
|
7.8
|
|
|
27.2
|
|
Professional services and temporary labor
|
10.4
|
|
|
4.5
|
|
|
19.7
|
|
|
19.6
|
|
Property, office and technology
|
0.6
|
|
|
0.2
|
|
|
1.2
|
|
|
2.2
|
|
Prior period impact of multi-year VAT tax recovery
(b)
|
(22.8
|
)
|
|
—
|
|
|
(22.8
|
)
|
|
—
|
|
Senior executive retirement and related costs
(c)
|
—
|
|
|
—
|
|
|
—
|
|
|
19.7
|
|
Adjustments to operating income
|
(8.3
|
)
|
|
12.3
|
|
|
5.9
|
|
|
68.7
|
|
Foreign exchange hedge (gain)/loss
(d)
|
(2.3
|
)
|
|
0.5
|
|
|
(5.9
|
)
|
|
21.5
|
|
Taxation:
|
|
|
|
|
|
|
|
||||
Taxation on business optimization charges
(a)
|
(2.9
|
)
|
|
(3.8
|
)
|
|
(6.2
|
)
|
|
(16.8
|
)
|
Taxation on senior executive retirement and related costs
(c)
|
—
|
|
|
—
|
|
|
—
|
|
|
(5.9
|
)
|
Taxation on foreign exchange hedge amortization
(d)
|
0.6
|
|
|
(0.2
|
)
|
|
1.4
|
|
|
(8.1
|
)
|
Retroactive state tax adjustment
(e)
|
—
|
|
|
12.2
|
|
|
—
|
|
|
12.2
|
|
Taxation on prior period impact of multi-year VAT recovery
(b)
|
4.3
|
|
|
—
|
|
|
4.3
|
|
|
—
|
|
Adjustments to net income attributable to Invesco Ltd.
|
(8.6
|
)
|
|
21.0
|
|
|
(0.5
|
)
|
|
71.6
|
|
(a)
|
Business optimization: Operating expenses for the
three and nine months ended
September 30, 2018
include costs associated with business transformation initiatives.
|
(b)
|
As a result of an increase in our recoverable VAT from applying additional regulatory guidance, a credit was recorded in the third quarter of 2018. The portion of the cumulative adjustment representing 2014 through 2017 has been removed for non-GAAP purposes.
|
(c)
|
Operating expenses for the
nine months ended
September 30, 2017
reflect the cost of multiple senior executive retirements, including, among others, the former Senior Managing Director of EMEA and the Chairman of our Private Equity business, which resulted in expenses of
$19.7 million
related to accelerated vesting of deferred compensation and other separation costs.
|
(d)
|
Included within other gains and losses, net is the mark-to-market of foreign exchange put option contracts intended to provide protection against the impact of a significant decline in the Pound Sterling/U.S. Dollar and the Euro/U.S. Dollar foreign exchange rates. The Pound Sterling contracts provide coverage through
June 28, 2019
and the Euro contracts provided coverage through
December 27, 2017
. The adjustment from U.S. GAAP to non-GAAP earnings removes the impact of market volatility; therefore, the company's non-GAAP results include only the amortization of the cost of the contracts during the contract period.
|
(e)
|
The income tax provision for the
nine months ended
September 30, 2017
includes a retroactive state tax adjustment of
$12.2 million
related to 2016 and prior open tax years caused by changes in the state tax regulations.
|
|
As of September 30, 2018
|
|
As of December 31, 2017
|
||||||||||||||||||||
Balance sheet information
$ in millions |
U.S. GAAP
|
|
Impact of CIP
|
|
Impact of Policyholders
|
|
As Adjusted
|
|
U.S. GAAP
|
|
Impact of CIP
|
|
Impact of Policyholders
|
|
As Adjusted
|
||||||||
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Cash and cash equivalents
|
1,631.5
|
|
|
—
|
|
|
—
|
|
|
1,631.5
|
|
|
2,006.4
|
|
|
—
|
|
|
—
|
|
|
2,006.4
|
|
Unsettled fund receivables
|
851.6
|
|
|
—
|
|
|
—
|
|
|
851.6
|
|
|
793.8
|
|
|
—
|
|
|
—
|
|
|
793.8
|
|
Investments
|
643.8
|
|
|
(520.1
|
)
|
|
—
|
|
|
1,163.9
|
|
|
674.6
|
|
|
(478.9
|
)
|
|
—
|
|
|
1,153.5
|
|
Assets of CIP:
|
|
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
—
|
|
||||||
Investments and other assets of CIP
|
6,131.3
|
|
|
6,131.3
|
|
|
—
|
|
|
—
|
|
|
5,789.5
|
|
|
5,789.5
|
|
|
—
|
|
|
—
|
|
Cash and cash equivalents of CIP
|
282.8
|
|
|
282.8
|
|
|
—
|
|
|
—
|
|
|
511.3
|
|
|
511.3
|
|
|
—
|
|
|
—
|
|
Assets held for policyholders
|
12,268.2
|
|
|
—
|
|
|
12,268.2
|
|
|
—
|
|
|
12,444.5
|
|
|
—
|
|
|
12,444.5
|
|
|
—
|
|
Goodwill and intangible assets, net
|
9,468.0
|
|
|
—
|
|
|
—
|
|
|
9,468.0
|
|
|
8,149.4
|
|
|
—
|
|
|
—
|
|
|
8,149.4
|
|
Other assets
(2)
|
1,226.6
|
|
|
(3.8
|
)
|
|
—
|
|
|
1,230.4
|
|
|
1,299.3
|
|
|
(21.6
|
)
|
|
—
|
|
|
1,320.9
|
|
Total assets
|
32,503.8
|
|
|
5,890.2
|
|
|
12,268.2
|
|
|
14,345.4
|
|
|
31,668.8
|
|
|
5,800.3
|
|
|
12,444.5
|
|
|
13,424.0
|
|
LIABILITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Liabilities of CIP:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Debt of CIP
|
4,820.5
|
|
|
4,820.5
|
|
|
—
|
|
|
—
|
|
|
4,799.8
|
|
|
4,799.8
|
|
|
—
|
|
|
—
|
|
Other liabilities of CIP
|
315.8
|
|
|
315.8
|
|
|
—
|
|
|
—
|
|
|
498.8
|
|
|
498.8
|
|
|
—
|
|
|
—
|
|
Policyholder payables
|
12,268.2
|
|
|
—
|
|
|
12,268.2
|
|
|
—
|
|
|
12,444.5
|
|
|
—
|
|
|
12,444.5
|
|
|
—
|
|
Unsettled fund payables
|
821.5
|
|
|
—
|
|
|
—
|
|
|
821.5
|
|
|
783.8
|
|
|
—
|
|
|
—
|
|
|
783.8
|
|
Long-term debt
|
2,814.6
|
|
|
—
|
|
|
—
|
|
|
2,814.6
|
|
|
2,075.8
|
|
|
—
|
|
|
—
|
|
|
2,075.8
|
|
Other liabilities
(3)
|
1,721.2
|
|
|
—
|
|
|
—
|
|
|
1,721.2
|
|
|
1,867.3
|
|
|
—
|
|
|
—
|
|
|
1,867.3
|
|
Total liabilities
|
22,761.8
|
|
|
5,136.3
|
|
|
12,268.2
|
|
|
5,357.3
|
|
|
22,470.0
|
|
|
5,298.6
|
|
|
12,444.5
|
|
|
4,726.9
|
|
EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Total equity attributable to Invesco Ltd.
|
8,987.1
|
|
|
(0.1
|
)
|
|
—
|
|
|
8,987.2
|
|
|
8,696.1
|
|
|
(0.1
|
)
|
|
—
|
|
|
8,696.2
|
|
Noncontrolling interests
(4)
|
754.9
|
|
|
754.0
|
|
|
—
|
|
|
0.9
|
|
|
502.7
|
|
|
501.8
|
|
|
—
|
|
|
0.9
|
|
Total equity
|
9,742.0
|
|
|
753.9
|
|
|
—
|
|
|
8,988.1
|
|
|
9,198.8
|
|
|
501.7
|
|
|
—
|
|
|
8,697.1
|
|
Total liabilities and equity
|
32,503.8
|
|
|
5,890.2
|
|
|
12,268.2
|
|
|
14,345.4
|
|
|
31,668.8
|
|
|
5,800.3
|
|
|
12,444.5
|
|
|
13,424.0
|
|
(2)
|
Amounts include accounts receivable, prepaid assets, property, equipment and software and other assets
|
(3)
|
Amounts include accrued compensation and benefits, accounts payable and accrued expenses and deferred tax liabilities
|
(4)
|
Amounts include redeemable noncontrolling interests in consolidated entities and equity attributable to nonredeemable noncontrolling interests in consolidated entities
|
Cash flow information
(1)
|
Nine months ended
September 30, 2018 |
|
Nine months ended
September 30, 2017 |
||||||||||||||
$ in millions
|
U.S. GAAP
|
|
Impact of CIP
|
|
Excluding CIP
|
|
U.S. GAAP
|
|
Impact of CIP
|
|
Excluding CIP
|
||||||
Cash and cash equivalents, beginning of the period
|
2,517.7
|
|
|
511.3
|
|
|
2,006.4
|
|
|
2,070.2
|
|
|
742.2
|
|
|
1,328.0
|
|
Cash flows from operating activities
(1)
|
662.1
|
|
|
(225.3
|
)
|
|
887.4
|
|
|
773.0
|
|
|
(255.4
|
)
|
|
1,028.4
|
|
Cash flows from investing activities
|
(2,682.9
|
)
|
|
(1,140.1
|
)
|
|
(1,542.8
|
)
|
|
(502.7
|
)
|
|
(225.8
|
)
|
|
(276.9
|
)
|
Cash flows from financing activities
|
1,584.1
|
|
|
1,276.3
|
|
|
307.8
|
|
|
(220.8
|
)
|
|
229.5
|
|
|
(450.3
|
)
|
Increase/(decrease) in cash and cash equivalents
|
(436.7
|
)
|
|
(89.1
|
)
|
|
(347.6
|
)
|
|
49.5
|
|
|
(251.7
|
)
|
|
301.2
|
|
Foreign exchange movement on cash and cash equivalents
|
(29.0
|
)
|
|
(1.7
|
)
|
|
(27.3
|
)
|
|
91.5
|
|
|
4.4
|
|
|
87.1
|
|
Net cash inflows (outflows) upon consolidation/deconsolidation of CIP
|
(137.7
|
)
|
|
(137.7
|
)
|
|
—
|
|
|
(9.0
|
)
|
|
(9.0
|
)
|
|
—
|
|
Cash and cash equivalents, end of the period
|
1,914.3
|
|
|
282.8
|
|
|
1,631.5
|
|
|
2,202.2
|
|
|
485.9
|
|
|
1,716.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Cash and cash equivalents
|
1,631.5
|
|
|
—
|
|
|
1,631.5
|
|
|
1,716.3
|
|
|
—
|
|
|
1,716.3
|
|
Cash and cash equivalents of CIP
|
282.8
|
|
|
282.8
|
|
|
—
|
|
|
485.9
|
|
|
485.9
|
|
|
—
|
|
Total cash and cash equivalents per consolidated statement of cash flows
|
1,914.3
|
|
|
282.8
|
|
|
1,631.5
|
|
|
2,202.2
|
|
|
485.9
|
|
|
1,716.3
|
|
(1)
|
These tables include non-GAAP presentations. Cash held by CIP is not available for use by Invesco. Additionally, there is no recourse to Invesco for CIP debt. The cash flows of CIP do not form part of the company’s cash flow management processes, nor do they form part of the company’s significant liquidity evaluations and decisions. Policyholder assets and liabilities are equal and offsetting and have no impact on Invesco’s shareholder’s equity. The impact of cash inflows/outflows from policyholder assets and liabilities are reflected within cash flows from operating activities as changes in receivable and/or payables, as applicable.
|
$ in millions
|
September 30, 2018
|
|
December 31, 2017
|
||
Floating rate credit facility expiring August 11, 2022
|
737.2
|
|
|
—
|
|
Unsecured Senior Notes:
|
|
|
|
||
$600 million 3.125% - due November 30, 2022
|
597.4
|
|
|
596.9
|
|
$600 million 4.000% - due January 30, 2024
|
594.6
|
|
|
594.0
|
|
$500 million 3.750% - due January 15, 2026
|
495.4
|
|
|
495.1
|
|
$400 million 5.375% - due November 30, 2043
|
390.0
|
|
|
389.8
|
|
Long-term debt
|
2,814.6
|
|
|
2,075.8
|
|
$ millions
|
Total
|
|
Q3 2018
|
|
Q2 2018
|
|
Q1 2018
|
|
Q4 2017
|
|
||||||
Net income attributable to Invesco Ltd.
|
1,176.8
|
|
|
269.6
|
|
|
245.1
|
|
|
253.9
|
|
|
408.2
|
|
|
|
Impact of CIP on net income attributable to Invesco Ltd.
|
(10.5
|
)
|
|
(11.3
|
)
|
|
2.2
|
|
|
(0.6
|
)
|
|
(0.8
|
)
|
|
|
Tax expense
|
178.6
|
|
|
61.1
|
|
|
72.3
|
|
|
68.4
|
|
|
(23.2
|
)
|
|
|
Amortization/depreciation
|
140.2
|
|
|
39.6
|
|
|
32.4
|
|
|
33.6
|
|
|
34.6
|
|
|
|
Interest expense
|
105.9
|
|
|
29.6
|
|
|
29.5
|
|
|
23.2
|
|
|
23.6
|
|
|
|
Share-based compensation expense
|
164.9
|
|
|
42.8
|
|
|
40.8
|
|
|
40.9
|
|
|
40.4
|
|
|
|
Unrealized gains and losses from investments, net
*
|
0.5
|
|
|
(4.7
|
)
|
|
11.7
|
|
|
11.4
|
|
|
(17.9
|
)
|
|
|
EBITDA
**
|
1,756.4
|
|
|
426.7
|
|
|
434.0
|
|
|
430.8
|
|
|
464.9
|
|
|
|
Adjusted debt
**
|
|
$2,830.5
|
|
|
|
|
|
|
|
|
|
|
||||
Leverage ratio (Debt/EBITDA - maximum 3.25:1.00)
|
1.61
|
|
|
|
|
|
|
|
|
|
|
|||||
Interest coverage (EBITDA/Interest Expense - minimum 4.00:1.00)
|
16.59
|
|
|
|
|
|
|
|
|
|
|
*
|
Adjustments for unrealized gains and losses from investments, as defined in our credit facility, may also include non-cash gains and losses on investments to the extent that they do not represent anticipated future cash receipts or expenditures.
|
**
|
EBITDA and Adjusted debt are non-GAAP financial measures; however management does not use these measures for anything other than these debt covenant calculations. The calculation of EBITDA above (a reconciliation from net income attributable to Invesco Ltd.) is defined by our credit agreement, and therefore net income attributable to Invesco Ltd. is the most appropriate GAAP measure from which to reconcile to EBITDA. The calculation of Adjusted debt is defined in our credit facility and equals total debt of
$2,814.6 million
plus
$15.8 million
in letters of credit.
|
•
|
Causing the value of AUM to decrease.
|
•
|
Causing the returns realized on AUM to decrease (impacting performance fees).
|
•
|
Causing clients to withdraw funds in favor of investments in markets that they perceive to offer greater opportunity and that the company does not serve.
|
•
|
Causing clients to rebalance assets away from investments that the company manages into investments that the company does not manage.
|
•
|
Causing clients to reallocate assets away from products that earn higher revenues into products that earn lower revenues.
|
Month
|
Total Number of Shares Purchased
(1)
|
|
Average Price Paid Per Share
|
|
Total Number of Shares
Purchased as Part of Publicly Announced Plans or Programs (2) |
|
Maximum Number at end of period (or Approximate
Dollar Value) of Shares that May Yet Be Purchased Under the Plans or Programs (2) (millions) |
||||||
July 1-31, 2018
|
37,634
|
|
|
$
|
26.43
|
|
|
—
|
|
|
|
$1,643.0
|
|
August 1-31, 2018
|
4,810
|
|
|
$
|
24.76
|
|
|
—
|
|
|
|
$1,643.0
|
|
September 1-30, 2018
|
16,367
|
|
|
$
|
24.35
|
|
|
—
|
|
|
|
$1,643.0
|
|
Total
|
58,811
|
|
|
|
|
—
|
|
|
|
(1)
|
An aggregate of
58,811
shares were surrendered to us by Invesco employees to satisfy tax withholding obligations in connection with the vesting of equity awards.
|
(2)
|
At
September 30, 2018
, a balance of
$1,643.0 million
remains available under the share repurchase authorizations approved by the Board on October 11, 2013 and July 22, 2016.
|
10.1
|
|
31.1
|
|
31.2
|
|
32.1
|
|
32.2
|
|
101.INS
|
XBRL Instance Document
|
101.SCH
|
XBRL Taxonomy Extension Schema Document
|
101.CAL
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
101.LAB
|
XBRL Taxonomy Extension Definition Linkbase Document
|
101.PRE
|
XBRL Taxonomy Extension Labels Linkbase Document
|
101.DEF
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
|
INVESCO LTD.
|
October 24, 2018
|
/s/ MARTIN L. FLANAGAN
|
|
Martin L. Flanagan
|
|
President and Chief Executive Officer
|
|
|
October 24, 2018
|
/s/ LOREN M. STARR
|
|
Loren M. Starr
|
|
Senior Managing Director and Chief Financial Officer
|
Article 1 DEFINITIONS
|
2
|
Section 1.1
|
Certain Definitions
2
|
Article 2 THE TRANSACTIONS
|
23
|
Section 2.1
|
The Merger and the Subsequent Merger
23
|
Section 2.2
|
Closing
23
|
Section 2.3
|
Effective Time
24
|
Section 2.4
|
Effect on Capital Stock
25
|
Section 2.5
|
Payment of Merger Consideration
25
|
Section 2.6
|
Escrow Fund
28
|
Section 2.7
|
Other Closing Deliverables
28
|
Section 2.8
|
Merger Consideration; Adjustments
29
|
Section 2.9
|
Organizational Documents
37
|
Section 2.10
|
Directors
37
|
Section 2.11
|
Officers
37
|
Section 2.12
|
Appraisal Rights
37
|
Section 2.13
|
Treatment of Equity Awards.
38
|
Section 2.14
|
Withholding
39
|
Article 3 REPRESENTATIONS AND WARRANTIES OF THE COMPANY
|
40
|
Section 3.1
|
Organization and Related Matters
40
|
Section 3.2
|
Authority; No Violations
40
|
Section 3.3
|
Non-Contravention
41
|
Section 3.4
|
Capital Structure; Subsidiaries
41
|
Section 3.5
|
Financial Statements
43
|
Section 3.6
|
Absence of Liabilities
43
|
Section 3.7
|
Absence of Certain Changes
43
|
Section 3.8
|
Contracts
43
|
Section 3.9
|
Legal Proceedings
45
|
Section 3.10
|
Compliance with Applicable Law
45
|
Section 3.11
|
Other Compliance Matters
46
|
Section 3.12
|
Company Clients
48
|
Section 3.13
|
Company Funds
49
|
Section 3.14
|
Insurance
51
|
Section 3.15
|
Employees; Employee Benefit Plans; ERISA
51
|
Section 3.16
|
Company Tax Representations
53
|
Section 3.17
|
Intellectual Property
55
|
Section 3.18
|
Real Estate
55
|
Section 3.19
|
Contracts with Affiliates
56
|
Section 3.20
|
No Broker
56
|
Section 3.21
|
Disclaimer Regarding Projections
56
|
Section 3.22
|
Investigation; No Additional Representations
57
|
Section 4.1
|
Organization and Related Matters
58
|
Section 4.2
|
Authority; No Violation
58
|
Section 4.3
|
Non-Contravention
59
|
Section 4.4
|
Availability of Funds
60
|
Section 4.5
|
Capital Structure; Subsidiaries
60
|
Section 4.6
|
Stock Consideration
61
|
Section 4.7
|
SEC Reports; Financial Statements
61
|
Section 4.8
|
Absence of Liabilities
63
|
Section 4.9
|
Absence of Certain Changes
63
|
Section 4.10
|
Legal Proceedings
63
|
Section 4.11
|
Compliance with Applicable Law
63
|
Section 4.12
|
Other Compliance Matters
63
|
Section 4.13
|
Buyer Clients
65
|
Section 4.14
|
Buyer Funds
65
|
Section 4.15
|
Purchase for Investment
66
|
Section 4.16
|
Takeover Laws
67
|
Section 4.17
|
Taxes
67
|
Section 4.18
|
No Broker
67
|
Section 4.19
|
Disclaimer Regarding Projections
67
|
Section 4.20
|
Investigation; No Additional Representations
68
|
Section 5.1
|
Conduct of Business by the Company
68
|
Section 5.2
|
Conduct of Business by Buyer
71
|
Section 5.3
|
Advisory Agreement Consents
72
|
Section 5.4
|
Access to Information; Confidentiality; Books and Records
77
|
Section 5.5
|
Public Announcements
79
|
Section 5.6
|
Regulatory Matters; Third Party Consents
80
|
Section 5.7
|
Non-Solicitation of Alternative Transactions
81
|
Section 5.8
|
Section 15(f)
82
|
Section 5.9
|
D&O Indemnification and Insurance
83
|
Section 5.10
|
Affiliate Agreements
84
|
Section 5.11
|
Employees and Employee Benefits
84
|
Section 5.12
|
Insurance
88
|
Section 5.13
|
Stock Consideration Matters
88
|
Section 5.14
|
Trademarks
88
|
Section 5.15
|
Board of Directors
89
|
Section 5.16
|
Takeover Laws
89
|
Section 5.17
|
Client List
89
|
Section 5.18
|
Transition Services
90
|
Section 6.1
|
Mutual Conditions
90
|
Section 6.2
|
Conditions to the Obligations of Buyer, Merger Sub and Merger Sub 2
91
|
Section 6.3
|
Conditions to the Obligations of the Company and Parent
92
|
Section 6.4
|
Frustration of Closing Conditions
93
|
Section 7.1
|
Termination
93
|
Section 7.2
|
Survival
95
|
Section 8.1
|
Tax Indemnification
95
|
Section 8.2
|
Tax Returns
96
|
Section 8.3
|
Amendment of Tax Returns; Similar Items
97
|
Section 8.4
|
Transfer Taxes
97
|
Section 8.5
|
Allocation of Straddle Period Taxes
98
|
Section 8.6
|
Tax Audits
98
|
Section 8.7
|
Tax Refunds and Credits
99
|
Section 8.8
|
Cooperation
100
|
Section 8.9
|
Tax Sharing Agreements
100
|
Section 8.10
|
FIRPTA
100
|
Section 8.11
|
Gain Recognition Agreement Compliance; Related Matters
101
|
Section 8.12
|
Coordination; Survival
102
|
Section 9.1
|
Survival
102
|
Section 9.2
|
Indemnification by Parent
102
|
Section 9.3
|
Indemnification by Buyer
103
|
Section 9.4
|
Indemnification Generally; Certain Limitation
104
|
Section 9.5
|
Notification of Claims; Third Party Claims
106
|
Section 9.6
|
Payments of Claims
108
|
Section 9.7
|
Exclusive Remedy
108
|
Section 9.8
|
Mutual Release
108
|
Section 10.1
|
Amendments; Waiver
109
|
Section 10.2
|
Entire Agreement
109
|
Section 10.3
|
Expenses
110
|
Section 10.4
|
Interpretation
110
|
Section 10.5
|
Shareholder Representative
111
|
Section 10.6
|
Severability
114
|
Section 10.7
|
Notices
114
|
Section 10.8
|
Specific Performance
116
|
Section 10.9
|
Binding Effect; Persons Benefiting; No Assignment
116
|
Section 10.10
|
Counterparts
116
|
Section 10.11
|
Governing Law; Consent to Jurisdiction
117
|
Section 10.12
|
Waiver of Jury Trial
117
|
Section 10.13
|
Waiver of Conflicts
117
|
Section 10.14
|
Exhibits and Schedules
119
|
By:
|
/s/ Loren M. Starr
Name: Loren M. Starr Title: Senior Managing Director and |
By:
|
/s/ Loren M. Starr
Name: Loren M. Starr Title: Chief Executive Officer and |
By:
|
/
s/ Loren M. Starr
Name: Loren M. Starr Title: Chief Executive Officer and |
By:
|
/s/ Roger W. Crandall
Name: Roger W. Crandall Title: Chairman |
By:
|
/s/Arthur P. Steinmetz
Name: Arthur P. Steinmetz |
1.
|
I have reviewed this Quarterly Report on Form 10-Q of Invesco Ltd.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5.
|
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
October 24, 2018
|
|
/s/ MARTIN L. FLANAGAN
|
|
|
Martin L. Flanagan
|
|
|
President and Chief Executive Officer
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q of Invesco Ltd.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5.
|
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
October 24, 2018
|
|
/s/ LOREN M. STARR
|
|
|
Loren M. Starr
|
|
|
Senior Managing Director and Chief Financial Officer
|
1.
|
the Report fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934; and
|
2.
|
the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
October 24, 2018
|
|
/s/ MARTIN L. FLANAGAN
|
|
|
Martin L. Flanagan
|
|
|
President and Chief Executive Officer
|
1.
|
the Report fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934; and
|
2.
|
the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
October 24, 2018
|
|
/s/ LOREN M. STARR
|
|
|
Loren M. Starr
|
|
|
Senior Managing Director and Chief Financial Officer
|